Take-Two Weakness may be a Buy Opportunity

Weakness in Take-Two Interactive (TTWO) may be temporary.

Earlier today, the stock dropped on news Grand Theft Auto Vi was leaked online.

“Dozens of development videos of the game showing footages of robberies, gunplay and open-world driving were posted on an online message board by the hacker, in what could be one of the biggest gaming leaks,” said Reuters.

However, according to Take-Two, the leak should not impact the game’s development.  It’s also not expected to impact sales, which could exceed $3.5 billion at launch.  Even better, the pullback presents a buy opportunity, according to Benchmark analyst Mike Hickey.

The analyst does not think the leak of the “pre-alpha” footage will challenge the timing of the game’s release or the ultimate demand for the game, adding that he thought the early footage “looked incredible,” as noted by TheFly.com.  Hickey, who “can’t imagine anybody would decide to not play the game after viewing the footage,” is incrementally more confident the game can release in FY25 as the leak confirms that “the game is very much real, and significant development has been completed.”

Hickey currently has a buy rating on the stock with a $200 price target.