Anyone who has been tracking TTWO for awhile ever seen TTWO get downgraded, open down 4% and then rally back close to even? This is extremely unusual for TTWO, an oppurtunity like this used to be enough for a total butt kicking, today its basically a non event. You can all look at the future the way you want, but I see positive catalysts lined up straight ahead: This quarter is a lock given the unbelievable continued performance of GTA and NBA with significant upside potential, on the GTA side we have the combination of PC, DLC and next gen I believe all lined up for the Q1FY15 and all making FY15 a lock for a profitable year before anything else happens, and then the wildcards come in: How much cash is on hand and the corresponding share buyback potential, release timing for the 10+ next gen titles, microtransactions for Online and on and on. This isnt the TTWO of the last 5-10 year, poor mgmt communication aside, but the market doesnt realize it yet.
Certainly not a bullish sign on a technical basis but the drop makes it more bullish on a fundamentals basis. TTWO will become more fairly valued eventually. Either by having the stock price go up or by having TTWO burn through that cash without good returns. I'm betting on the former but the latter is a possibility.