TTWO Stock Falls -10% With A 5-day Losing Spree On AI Disruption Fears
Take-Two Interactive Software (TTWO) – a developer and publisher of interactive entertainment products worldwide – hit a 5-day losing streak, with cumulative losses over this period amounting to -10%. The company’s market cap has crashed by about $4.7 Bil over the last 5 days and currently stands at $41 Bil.
The stock has YTD (year-to-date) return of 14.0% compared to 1.4% for S&P 500. This calls for a re-evaluation of the stock’s valuation to find out whether this is an opportunity or a trap.
What Triggered The Slide?
[1] Google’s Project Genie AI Debut
- Multiple analysts directly attribute the stock’s sharp fall to the unveiling of Google’s generative AI tool
- The news also impacted other gaming stocks like Roblox and CD Projekt
- Impact: Significant stock price decline of over 11% at one point on January 30th, Heightened investor concern about the future of game development
[2] Broader Gaming Sector Headwinds
- Concerns around new regulations and potential market saturation
- Analysts note short-term uncertainty for the industry
- Impact: Increased volatility in gaming and gambling stocks, Weakened investor sentiment across the sector
Opportunity or Trap?
Below is our take on valuation.
There is a near-equal mix of good and bad in TTWO stock given its overall Moderate operating performance and financial condition. But keeping in mind its High valuation, we think that the stock is Unattractive (For details, see Buy or Sell TTWO).
But here is the real interesting point.
You are reading about this -10% move after it happened. The market has already priced in the news. To avoid the next loser before the headlines, you need predictive signals, not notifications. Our High Quality Portfolio has a risk model designed to reduce exposure to losers.
Returns vs S&P 500
The following table summarizes the return for TTWO stock vs. the S&P 500 index over different periods, including the current streak:
| Return Period | TTWO | S&P 500 |
|---|---|---|
| 1D | -7.9% | -0.4% |
| 5D (Current Streak) | -10.3% | 0.3% |
| 1M (21D) | -14.6% | 0.6% |
| 3M (63D) | -12.5% | 0.7% |
| YTD 2026 | -14.0% | 1.4% |
| 2025 | 39.1% | 16.4% |
| 2024 | 14.4% | 23.3% |
| 2023 | 54.6% | 24.2% |
Take a look at what history tells you about whether past dips like this have been buying opportunities or traps: TTWO Dip Buyer Analysis.
Gains and Losses Streaks: S&P 500 Constituents
There are currently 48 S&P constituents with 3 days or more of consecutive gains and 71 constituents with 3 days or more of consecutive losses.
| Consecutive Days | # of Gainers | # of Losers |
|---|---|---|
| 3D | 28 | 25 |
| 4D | 13 | 21 |
| 5D | 5 | 11 |
| 6D | 2 | 8 |
| 7D or more | 0 | 6 |
| Total >=3 D | 48 | 71 |
Key Financials for Take-Two Interactive Software (TTWO)
Last 2 Fiscal Years:
| Metric | FY2024 | FY2025 |
|---|---|---|
| Revenues | $5.3 Bil | $5.6 Bil |
| Operating Income | $-1.1 Bil | $-739.4 Mil |
| Net Income | $-3.7 Bil | $-4.5 Bil |
Last 2 Fiscal Quarters:
| Metric | 2026 FQ1 | 2026 FQ2 |
|---|---|---|
| Revenues | $1.5 Bil | $1.8 Bil |
| Operating Income | $17.4 Mil | $-97.9 Mil |
| Net Income | $-11.9 Mil | $-133.9 Mil |
The losing streak TTWO stock is currently on doesn’t inspire much confidence among investors. In contrast, Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.