News

Activision Drops on the Market on Misleading Headline

Activision Blizzard suffered some losses on the market after Dow Jones mistakenly showed the wrong headlines. The online game making company blamed the Dow Jones for their unexpected market dip as they break their embargo.

Activision has been widely popular for producing some of the top games in the market today. Some titles like StarCraft, Diablo, Hearthstone, and Overwatch were just some of their exceptionally popular games.

They also produced some of the classic games on different consoles. Games such as the Call of Duty series, Crash Bandicoot series, Destiny Series, and Guitar Hero series were all made by the company. The company has also been reported to house a total of 9,500 employees as of last year.

The company’s recently announced quarterly earnings showed their dominance in the video game market. Activision managed to report earnings per share of 94 cents, inches higher on the 93 cents expectations. The video game maker also managed to report revenue of $2.64 billion, higher than the $2.55 billion expectation.

Activision Volatile Session

Going back to Activision’s dilemma, the company’s shares managed to fall by as much as 6% before recovering tor relative levels.

The headline’s inaccuracy managed to push the shares down as they made the market believe the lackluster performance from the company.

The company’s shares managed to ease before closing a total of 2.3% down at $66.82 on the previous session. According to a statement that Dow Jones released, “We regret our error as well as inadvertently breaking the embargo.”

The DJI also noted that “We have issued a correction and are reviewing our processes.”

On the other hand, Activision initial response to the controversy is by noting on their conference call that Dow committed an “extraordinary error” which made the company volatile in the market.

Activision Drops on Dow Jones Wrong Report

Activision Drops on Dow Jones Wrong Report

Activision Quarterly Performance

Furthermore, Activision managed to report stellar quarterly report despite the flunk in the market. The game developing company managed to tally adjusted earnings of about 38 cents a share. Significantly higher than the expected 35 cents.

The first quarter revenue was also significantly higher at $1.38 billion, streaming passes the $1.32 billion forecasts. According to Activision’s CEO Bobby Kotick, “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,”

BWorldFinance is your primary source of news in the financial market, technology, and more. Visit bworldfinance.com now and get the latest happenings on the market. Register an account now and begin your investing journey!

Leave a Reply