Parkev Tatevosian, CFA on $TTWO (Nov 7, 2026)

We have important news for investors in Take-Two Interactive stock, as pre-order sales estimates for GTA 6 have already surpassed $750 million , which is about to break GTA 5's record of $800 million in first-day revenue.

Therefore, I wanted to discuss the details of these estimates and what they could mean for Take-Two Interactive and its investors.

I'll share my assessment of the stock's fair value, and whether I think it's a buying opportunity before the release of Grand Theft Auto 6. The company confirmed that Grand Theft Auto 6 did not cost $1.5 billion to produce, but even if it did, it had already made half of that unprecedented budget two weeks before its launch.

A new report from industry analytics firm Sensor Tower indicates that pre-orders for GTA 6 have now reached $750 million .

This is only $50 million less than the $800 million that GTA 5 made on its launch day. GTA 5 generated $1 billion in sales in its first 3 days, but for GTA 6, the figure is likely to be much higher.

The anticipation for this game is unprecedented in history. It could be said that it is the most anticipated game release in history. This is what the article here is referring to; we are not just talking about a record for a series, but a record for the industry, and that record surpasses the largest ever consumer product launch.

Another thing to keep in mind is that GTA 6 costs $80 compared to GTA 5, which cost $60 at launch. There is also a full version of GTA 6 for $100 that includes cosmetic additions and other bonuses, which has previously been reported to make up the majority of these sales.

Therefore, many of these pre-orders are for the $100 version , not the $80 version.

Therefore, GTA 6 will not only generate more unit sales, but each unit is likely to come with a higher average selling price. In addition, there will be a lot of digital unit sales , which will not have such a high associated commodity cost, because you do not have to manufacture, package, and distribute the disc to retailers, thus reducing the cost and increasing the profit per unit sold.

These figures include the fact that GTA 6 will not even be released on PCs when it comes out. Individuals will have to wait until a later time to get the game on personal computers.

Currently, at launch, it will only be available for home gaming consoles .

Surprisingly, shares of Take-Two Interactive are trading at their lowest valuation in years. You might think that anticipating the most popular game of all time, its release, and its update would excite investors and push the stock forward , but the stock has remained relatively hidden from view , despite the huge buzz surrounding the game and its imminent release in a few days.

Shares of Take-Two Interactive are now trading at a forward price-to-earnings ratio of just 20, their cheapest valuation in years. Therefore, in light of these updates, I have raised my estimates for the amount of free cash flow I expect the company to generate.

Accordingly, my estimate for the fair value of the stock has increased.

I am now valuing the company at $234 per share, compared to the current market price of $212. The stock appears to be slightly undervalued when measured using this metric with a safety margin applied.

Therefore, based on the price-to- earnings ratio, the stock appears to be undervalued, and based on the discounted cash flow , it also appears to be slightly undervalued . So, to answer the question I posed in the introduction, I believe this stock represents a buying opportunity ahead of these launch events.

In the long run, the company has proven its prowess in research and development and in creating games that people love to buy. It's not just Grand Theft Auto; the company has other successful projects such as Red Dead Redemption, NBA 2K, and others as well.

It is a successful gaming company that has earned consumer appreciation , and that's what you get with Take-Two Interactive stock: a company capable of developing new games that people love and appreciate, and that is likely to continue doing so for many years to come.