Take-Two Shares Under Pressure Amid AI Disruption Fears

Take-Two US8740541094

Take-Two Interactive's stock has stumbled at the opening of the 2026 trading year, bucking a broader market rally. The video game publisher faces significant selling pressure, driven primarily by growing investor apprehension surrounding artificial intelligence's impact on the industry. As the company prepares to release its quarterly results after the U.S. market close today, the focus will extend beyond mere revenue and profit figures. The central question for shareholders is whether the upcoming Grand Theft Auto VI release possesses enough strength to counter this emerging technological threat.

Tonight’s financial disclosure is set against a backdrop of tempered expectations. For its third fiscal quarter, Take-Two’s own guidance projects a GAAP net loss per share in the range of $0.35 to $0.49, with revenue anticipated to reach a maximum of $1.62 billion. This cautious forecast falls short of the more optimistic projections from some market analysts, who had been anticipating a profitable period.

However, the fundamental quarterly assessment has been largely overshadowed. Investor attention has instead been captured by a heated debate concerning the long-term future of gaming. The stock’s recent performance reflects this anxiety, having declined more than 8% over the past week to trade near $226 per share. A key trigger for this sell-off was the unveiling of Google's "Project Genie," an AI model capable of generating playable virtual worlds. This demonstration has stoked fears that established business models within the gaming sector could face eventual disruption.

Market Experts Push Back Against the Narrative

Several prominent analysts view the recent market reaction as an overcorrection. Research firm Benchmark has reaffirmed its Buy rating on Take-Two, contending that AI tools do not pose a credible threat to the company’s impending "strong catalyst cycle" centered on Grand Theft Auto VI. Their thesis maintains that Take-Two’s globally recognized franchises and complex intellectual property cannot be easily replicated by generative AI. Analysts at Wedbush Securities concur, characterizing the current share price weakness as a mispricing and recently adding the stock to their "Best Ideas List."

All Eyes on the Grand Theft Auto VI Timeline

Consequently, the post-market earnings call will likely place less emphasis on historical performance and more on forward-looking commentary. The investment community is keenly awaiting management’s update on the development progress and launch timeline for the crucial GTA VI franchise. While the company’s existing portfolio of games has delivered mixed results recently, its mobile gaming segment has demonstrated notable resilience. The financial results are scheduled for release immediately following the closing bell on Wall Street.