Take-Two Interactive Software, Inc. (TTWO) Down 8.1% — Consider Getting Out?
Take-Two Interactive Software, Inc. (TTWO) came under renewed pressure in the latest session, sliding 8.13% and losing $19.44 to close at $219.83. The stock retreated sharply from the prior close of $239.27, marking one of its more pronounced single-day pullbacks in recent months. Trading activity ticked slightly higher, with volume at 1,543,678 shares versus a 90-day average of 1,520,437, suggesting this latest leg lower occurred with participation modestly above typical levels rather than on unusually light activity. From a price-action standpoint, the move underscores a market that is clearly leaning to the sell side in the short term.
On a longer horizon, TTWO is losing ground relative to its recent peak, now sitting well below its 52-week high of $264.79 reached on Oct. 15, 2025. At the current price, the stock is trading roughly $45 under that high-water mark, reinforcing the sense that momentum has been fading and the shares are retreating from prior strength. While the stock remains above its 52-week low of $181.86, the current pullback places it closer to the middle of its annual range rather than challenging the upper end. Within the broader communication and interactive entertainment space, the negative tone in TTWO stands out as the stock moves under pressure alongside other names in the group, such as Roblox Corporation (RBLX), Nebius Group (NBIS), and The Trade Desk (TTD), all of which have also experienced bouts of volatility and periods of price weakness. Overall, recent trading paints a picture of a stock facing headwinds rather than building constructive upside momentum.
Why Take-Two Interactive Software, Inc. Price is Moving Lower
Take-Two Interactive Software, Inc. is facing growing skepticism as investors look past its strong top-line momentum and focus instead on deteriorating profitability and execution risk. The company delivered an 18% quarter-over-quarter revenue increase to $1.77 billion and posted robust 31.09% revenue growth, yet the bottom line tells a different story. A deeply negative EPS of -$22.58 and a steep -64.26% profit margin highlight that current growth is coming at a significant cost. In today’s environment, where markets are increasingly punishing unprofitable growth, this combination of rapid sales expansion and sizable losses is exerting pressure on the share price.
Sector dynamics are adding to the headwinds. Within Communication Services and the broader Media and Entertainment space, peers like Roblox, Nebius Group, and The Trade Desk are also contending with choppy sentiment and rotation away from higher-risk, story-driven names. For Take-Two, investors are questioning how quickly recent investments and content pipelines can translate into sustainable earnings, rather than just higher revenue. The relatively in-line trading volume versus its 90-day average suggests institutions are using bouts of strength to reduce exposure rather than build new positions. With profitability metrics firmly in negative territory despite healthy revenue gains, concerns over execution, cash burn and valuation are leading to renewed downside pressure and warrant ongoing caution from investors tracking this stock’s next move.
What is the Take-Two Interactive Software, Inc. Rating - Should I Sell?
Weiss Ratings assigns TTWO a D rating. The stock was upgraded on 6/2/2025. Current recommendation is Sell. A D rating signals a weak overall risk/reward profile, even after considering some headline growth and a relatively stable balance sheet. For investors, this means downside risk remains a primary concern, and recent improvements have not been enough to shift the stock into a more favorable category.
The underlying sub-indices help explain why. The Weak Growth Index indicates that, despite revenue increasing 31.09%, the quality and sustainability of that growth are questionable, especially with a deeply negative profit margin of -64.26%. The Very Weak Efficiency Index is another red flag, pointing to poor returns on invested capital and operational execution. A forward P/E ratio of -10.60 reinforces the picture of a company struggling to convert growth into profitability, leaving shareholders exposed if expectations reset.
On the risk side, the Good Solvency Index and Good Volatility Index show that the company is not in immediate financial distress and that its price swings have been relatively manageable. However, the Fair Total Return Index makes clear that these positives have not translated into competitive performance versus alternatives. Within the Communication Services sector, Take-Two sits among underperformers like EchoStar Corporation (SATS, D-) and Nebius Group N.V. (NBIS, D+), and is only slightly above Roblox Corporation (RBLX, E+). For investors, the Sell rating encapsulates the core problem: rapid top-line growth has come with substantial losses and weak efficiency, leaving the overall investment case unattractive on a risk-adjusted basis.
About Take-Two Interactive Software, Inc.
Take-Two Interactive Software, Inc. operates in the Communication Services sector within the Media and Entertainment industry. The company is heavily concentrated in interactive entertainment, relying on a relatively narrow set of blockbuster franchises to sustain its position. Its Rockstar Games label is built around action/adventure properties such as Grand Theft Auto, LA Noire, Max Payne, Midnight Club, and Red Dead Redemption. These series have strong name recognition but also expose the company to high expectations, lengthy development cycles, and reputational risk tied to violent and mature content. Beyond Rockstar, Take-Two manages a broad but uneven portfolio spanning shooter, action, role-playing, strategy, sports, and casual genres, including BioShock, Mafia, Sid Meier's Civilization, XCOM, Borderlands, and Tiny Tina’s Wonderland.
The company also leans heavily on sports and mobile titles, where competition is intense and user engagement can be fragile. Through its 2K label, Take-Two publishes NBA 2K, WWE 2K, WWE SuperCard, and PGA TOUR 2K, all of which depend on licensing arrangements and cyclical annual releases. Its mobile and free-to-play slate, expanded significantly through Zynga, includes Kerbal Space Program and a wide array of casual and hyper-casual games such as CSR Racing, FarmVille, Empires & Puzzles, Golf Rival, Toon Blast, Toy Blast, Two Dots, Words With Friends, and Zynga Poker, along with titles like Color Block Jam, Parking Jam 3D, and Pull the Pin. These products are distributed across console systems, smartphones, tablets, and personal computers via physical retail, digital download, online platforms, and cloud streaming services. Incorporated in 1993 and based in New York, New York, Take-Two’s business model is deeply exposed to changing player preferences, platform shifts, and the hit-driven nature of the video game market.
Investor Outlook
With Take-Two Interactive Software, Inc. (TTWO) carrying a D (Sell) Weiss Rating, investors may want to exercise caution and closely monitor whether recent price action aligns with improving fundamentals or continued underperformance versus peers. Watch for shifts in the broader Communication Services sector, any changes in profitability trends, and whether future results are strong enough to warrant an upgrade in the overall risk/reward profile. See full rankings of all D-rated Communication Services stocks inside the Weiss Stock Screener.
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