It's not like TTWO is the only stock where good news comes out and the stock doesn't go anywhere. For the entire summer it was mostly great news with the auto industry, Ford beat expectations and improved guidance, and the stock really hasn't done anything. The expectation for a lot of people owned the stock was that it would be over $20 now.
You can name TTWO's games until you are blue in the face, many people believe this company is a one trick pony, and that one trick is done every 4 or 5 years. TTWO's past has been a complete tank with the stock after a GTA release. It is what it is.
If things have really changed, if this company has turned the corner, the stock price will eventually reflect that when TTWO beats earnings and improves guidance. This stock could at some point rocket, but it's clear there is a high volume of selling on this stock right now preventing it from making a major move.
I'm as frustrated as anyone. There have been few name stocks that have been poor investments in September and this has been one of them.
There is a difference between trades and investments, TTWO has been an absolutely STELLAR investment over the last year and will continue to be over the next year. It is also a high beta stock so short term trades could fall anywhere over a given week.
I think we are going to see some short term upside here. I'm not an expert with technicals, but I think sell side analyst saw this as a pump and dump play not knowing that GTA V would smash COD sales by such a large margin. I think what the shorts have really created instead of panic is safe/ low risk entry positions for new buyers by pumping and then shorting it. If it had been still on the upswing while this news was announced without the dump then there would be a lot less buyers I think as now real safe entry would have shown itself.
I said it before but I think it is worth repeating, if you look at the atvi stock when COD came out November 13, 2012, if you look at the chart, it took over a month before the stock began to reflect its success. I suspect ttwo will behave similarly.