Home News Take-Two Stock Tumbles as ‘GTA VI’ Could Face Delays

Take-Two Stock Tumbles as ‘GTA VI’ Could Face Delays

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Key Takeaways

  • The S&P 500 fell 0.3% on Monday, March 25, 2024, kicking off the shortened trading week in negative territory as the tech rally faltered.
  • Super Micro Computer shares soared after JPMorgan initiated coverage of the server manufacturer’s stock with an outperform rating.
  • Shares of Take-Two Interactive tumbled amid reports about potential delays in releasing its “Grand Theft Auto VI” video game.

Major U.S. equities indexes moved lower to kick off a shortened four-day trading week as the rally in tech stocks lost steam.

Although markets will be closed on Friday in observance of the Good Friday holiday, that morning the latest Personal Consumption Expenditure (PCE) data will be released, the Federal Reserve’s preferred gauge of inflation. Following last week’s news that Fed officials still predict three interest rate cuts in 2024, investors will look to the data to confirm a sustainable cooldown in inflationary pressure.

The S&P 500 fell 0.3% in Monday’s session. The Nasdaq was also down 0.3%, while the Dow fell 0.4%.

Shares of Take-Two Interactive Software (TTWO) posted the day’s weakest performance among the S&P 500, slipping 4.2% following reports about a possible delay in the release of the company’s highly awaited “Grand Theft Auto VI (GTA VI)” video game. According to gaming news site Kotaku, the title faces production delays as remote workers at Take-Two subsidiary Rockstar Games wrestle with an unpopular mandate to return to the office.

Lululemon (LULU) shares dropped 3.5%, extending the steep losses posted on Friday after the athletic apparel maker issued weaker-than-expected profit and sales guidance. Although the firm sees strong growth potential in its international business, the lackluster forecast stemmed from softness in the U.S. market. Lululemon also plans to boost spending to enhance brand awareness.

United Airlines (UAL) shares fell 3.4% amid news that the Federal Aviation Administration (FAA) is investigating the carrier after several safety-related incidents. Although United expressed concerns about the safety issues and welcomed the oversight from the FAA, the regulatory agency said the probe could delay the airline’s future projects.

Super Micro Computer (SMCI) shares soared 7.2%, marking the top performance among S&P 500 stocks on Monday, after JPMorgan initiated coverage of the stock with an overweight rating. The bank highlighted significant upside potential for the server manufacturer based on its competitive advantage in generative artificial intelligence (AI) and its partnership with chip giant Nvidia (NVDA).

Micron Technology (MU) shares jumped 6.2%, adding to gains posted last week after the maker of memory chips posted better-than-expected quarterly results amid strong AI-driven demand.

Shares of electric power and natural gas company Constellation Energy (CEG) advanced 5.1% after Guggenheim boosted its price target on the stock to $199. Analysts noted they updated their valuation model after Constellation adopted a bifurcated earnings per share (EPS) model.

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