Activision Stock Drops After Leak Of Incorrect Earnings

Activision Stock Drops After Leak Of Incorrect Earnings

83
0
SHARE

After Dow Jones accidentally broke the news of the company’s earnings and posted them earlier than they were planned to be released.

Uproar

After the numbers were posted, Activision Blizzard’s stock had already jumped 3 percent before dropping another 5 percent. According to CNBC, trading was stopped around 2 pm for news when everyone realized that the earnings posted where ahead of time and released ahead of their planned scheduling.

Amrita Ahuja, senior vice president at Activision, said: “We want to start the call talking about an extraordinary error by WSJ today, causing volatility,”. She also went on to say that they “reported a completely inaccurate headline,” and “Not only did they report inaccurately, but in violation of our written agreement.”

On Going

Activision officially reported its earnings at 38 cents per share which were 3 cents more than the expected 35 cents per share.

CEO of Activision, Bobby Kotick said, “As we look ahead, our innovative core gaming pipeline, as well as initiatives like mobile, esports, and advertising, will continue to drive growth for our business,” after a slightly disappointing second-quarter.

As for the mix-up with the initially posted earnings and the stock stumbling after being noticed, other companies such as Take-Two and Electronic Arts also suffered a drop, although a quick apology was issued by Dow Jones and the stocks surged back to a new high.

In a statement released, Dow Jones said: “We regret our error as well as inadvertently breaking the embargo. We have issued a correction and are reviewing our processes.” KeyBanc analyst Evan Wingren explained that Activision might be the first gaming company to post its earnings after the gigantic success behind “Fortnite” from Epic Games as the game has taken the world by storm, following the equally impressive success behind “PlayerUnknown’s Battlegrounds”

LEAVE A REPLY