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Take-Two (NASDAQ:TTWO) took a surprise hit todayshares slid more than 6.6% after Rockstar Games said Grand Theft Auto 6 won't arrive until May 26, 2026, instead of late 2025yet savvy investors might see this as an attractive entry point. When a stock is up 18.4% year-to-date, though, a small pullback can feel more like a buying signal than a warning siren.
Here's the thing: GTA V has already sold over 210 million units, making it the second-best-selling game ever after Minecraft, so even if only half of those players jump into GTA 6, we're still talking blockbuster salesand that doesn't count the digital side. Take-Two's digital net bookings, driven by microtransactions, content drops and GTA Online, typically make up more than 80% of net bookings, pushing gross margins north of 70%. In other words, this isn't just a one-hit wonder scenarioit's a high-margin, repeat-revenue engine.
Analysts aren't panicking either. They point out that a development delay can actually smooth out resource planning and reduce the need for frantic post-launch patches, yielding a more polished game and steadier live-service income. Plus, the delay shifts some revenue into fiscal 2027, which could flatten those nasty seasonal earnings swings. With TTWO trading around 20 times consensus 2026 EPSversus 2530 times for peersit feels like a discount on a top-tier content catalog.
If you're curious how the stock's been behaving this year, here's the snapshot: TTWO opened January near $184, drifted down to $182 mid-month, then broke out above $200 in mid-February on renewed GTA 6 buzz and solid Q3 results. The shares consolidated around $195205 through March, dipped to the low $190s in early April, then rallied past $220 by late April as pipeline catalysts kicked in. A mild pullback in early May trimmed some gains, but with support still holding, the bullish case remains intact.
So, should you buy the dip? If you believe blockbuster franchises, recurring digital revenues and a deep slate of upcoming releases can keep Take-Two cruising, today's pullback might just be your green light. Keep an eye on the June 3 Q1 earnings report and any fresh gameplay revealsthose could be the next spark to reignite this rally.
This article first appeared on GuruFocus.