Why Take-Two Interactive Stock Is Sinking Today
Key Points
The broader stock market is seeing some bearish pressures today.
Take-Two stock is also selling off in response to video footage and information leaks about "Grand Theft Auto VI."
Take-Two Interactive (NASDAQ: TTWO) stock is heading lower in today's trading. The company's share price was down 6.6% as of 1:10 p.m. ET. The S&P 500 was down 0.5% at the same point in the daily session, and the Nasdaq Composite was down 0.4%.
Take-Two stock is moving lower today amid leaks surrounding Grand Theft Auto VI (GTA VI) -- by far the most important game in the company's release pipeline. The video game publisher's share price is also under pressure due to macroeconomic concerns about the bond market, inflation, and interest rate outlook.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Image source: Getty Images.
GTA VI leaks continue to weigh on Take-Two stock
Grand Theft Auto VI is on track for release on Nov. 19, but its pre-release promotional campaign is encountering snags due to video and information leaks. Substantial amounts of footage and info about the game's content have been leaked online, and it's caused some investors to take a more cautious approach to Take-Two stock. The company's share price is now down roughly 14% year to date.
What's next for Take-Two and GTA VI?
While some fan responses to the leaked GTA VI footage and info have been negative, excitement surrounding the game remains very high. Ideally, Take-Two would have pretty much full control over the game's pre-release campaign and be able to let its marketing campaign evolve without leakers throwing curveballs into the process -- but the leaks are unlikely to derail the game's performance. If GTA VI turns out to be the high-quality, blockbuster release that players are expecting, the current controversies and uncertainty surrounding the content leaks will likely have very little long-term impact.
Keith Noonan has positions in Take-Two Interactive Software. The Motley Fool has positions in and recommends Take-Two Interactive Software. The Motley Fool has a disclosure policy.