Take-Two Interactive (TTWO) shares fell 21% over the past year, while the S&P 500 gained 21%. Management still expects net bookings to grow about 20% in fiscal 2027, helped by the November 19 launch of Grand Theft Auto VI, but on its August 7 earnings call it was unsure how many preorders would turn into sales, since buyers can cancel and early demand may simply pull forward sales that would otherwise come after launch. Recurring player spending is expected to make up 64% of fiscal 2027 net bookings, so growth must come from new titles, with Rockstar Games expected to contribute about 37%. Net revenue rose just 2% in fiscal Q1 2027, yet the stock trades at 5.6 times sales versus 3.1 for the S&P 500; because the company lost money over the past year, the article argues sales are a better yardstick than earnings.
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