The leak of a trailer for the highly anticipated videogame Grand Theft Auto VI briefly hit shares of its publisher, Take-Two Interactive (NASDAQ:TTWO). TTWO stock is down about 2% this morning.
GTA, as the franchise is known, has not had a major new release in over a decade. It is a vital profit driver for Take-Two’s Rockstar Games unit. Grand Theft Auto V has raised Take-Two an estimated cumulative $11.4 billion in revenue since its release in 2013. That’s before considering in-game purchases, which would likely add billions more to that statistic.
The company’s release of the GTA VI trailer had been scheduled for this evening, but portions leaked online yesterday, forcing Rockstar to deliver the whole thing.
TTWO stock opened this morning at about $157 per share, a market capitalization of $26.5 billion. Shares are up 51% in 2023.
Bonnie & Clyde Take Two
The trailer appeared on X early Dec. 4 and quickly spread. An account where the leak first appeared was suspended, but the damage had been done.
Rockstar has been fighting leaks unsuccessfully for a year. The son of a Rockstar employee seems to have leaked a few seconds of the trailer over the weekend.
Game industry publishers immediately began panning the new game, asking whether players need yet another sequel. The new game is a version of the Bonnie & Clyde story, an antihero couple on a crime spree.
As the cost of producing games has risen over the years, individual games and game franchises have become more important. The GTA franchise remains popular despite the lack of any recent titles. It is considered key to Take-Two’s fortunes in 2025 and beyond.
Before the leak, Take-Two seemed to be on a roll. Shares rose sharply after third-quarter earnings were released in November. That was also when the company announced GTA VI would be released in 2025. Of 19 analysts following TTWO stock at Stocktwits, 17 tell investors to buy it.
TTWO Stock: What Happens Next?
The drop in Take-Two appears to be an event for traders, not investors. The overnight losses were mostly recovered by the time the market opened. Traders at Stocktwits remain very bullish.
As of this writing, Dana Blankenhorn did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
