By Angela Palumbo

Take-Two Interactive Software stock can bounce back after a recent selloff for the videogame company, Raymond James says.

Andrew Marok upgraded shares of Take-Two to Strong Buy from Outperform on Tuesday, maintaining a target of $285 for the price. That implies a 39% increase from the most recent closing level of $205.03.

Behind the slide are concerns similar to those that have battered software stocks in recent weeks: the fear that artificial intelligence capable of handling tasks now done via specialized software will devastate companies' businesses.

Take-Two stock fell 7.9% on Jan. 30 after Alphabet announced the availability of Project Genie, an AI-based tool that gives users the ability to create fully rendered three-dimensional worlds, as well as controllable characters within them. The worry was that while tools of that type are still in their early stages, they could change the future of videogame development.

Take-Two stock is now down 19% from its record closing high of $262.29 on Oct. 20.

But Marok wrote in a research note on Tuesday that the sell-off is "overdone."

"The worries around AI replacement in video gaming are misplaced in our view given the human factors around video game creation," Marok wrote, citing elements such as creating gameplay mechanics and multiplayer modes that make playing games enjoyable. Nor "can they replace engines in what makes games money (user acquisition, distribution, and monetization mechanics)," he wrote.

Instead of replacement, Marok sees a future where creators use these models to make even better games.

Marok is also optimistic about the company's future. It reported better-than-expected fiscal third-quarter bookings and raised its fiscal-year guidance on Feb. 3. The highly anticipated Grand Theft Auto VI, which is expected to encounter strong demand, will be launched on Nov. 19.

Shares of Take-Two were up 3.5% to $212.28 on Tuesday.

Write to Angela Palumbo at angela.palumbo@dowjones.com

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February 10, 2026 15:01 ET (20:01 GMT)

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