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Journalists error Dow Jones brought down the developer of the game Call of Duty

The photo:
frame from video Call of Duty / YouTube
  • Journalists mistakenly downgraded the company’s quarterly profit by $ 200 million
  • In a matter of minutes, the cost of Activision shares collapsed by 6%
  • By the end of trading securities of the company partially recovered losses

News agency Dow Jones, which specializes in the release of urgent stock news, has made a mistake in the news about quarterly reports of the company Activision Blizzard. Because of this, the shares of the developer of the popular computer game Call of Duty fell by almost 6%. This May 4 wrote the newspaper Wall Street Journal.

Journalists Dow Jones Newswires ahead of time published the company’s accounts, significantly understating the indicator of its quarterly profit. They said that Activision Blizzard received in the first quarter of 2018 a profit of $ 1.7 billion, while in fact it was almost $ 2 billion.

The error of journalists led to a temporary halt to the company’s shares trading on the New York Stock Exchange Nasdaq. After Dow Jones corrected the mistake, Activision Blizzard shares were able to almost fully restore the daily losses: by the evening of May 3, their value began to grow again and by the results of the trading session was $ 66.82 – minus 2.3% to the close.

The management of the news agency expressed regret about the mistake made. The company promised to revise the procedure for publishing information on corporate financial reporting.

In fact, writes WSJ, the following happened: at approximately 1:00 pm New York time, Dow Jones Newswires published three notes at once: a report on the company’s performance in the first quarter of 2018, information on net earnings per share and an erroneous quarter profit of $ 1.7 billion. Following this, Activision released a press release with an important clarification: in fact, the company’s profit in the first quarter grew by almost 14% compared to the same period in 2017, to $ 1.97 billion.

Activision Blizzard – one of the largest developers of popular computer games, including Call of Duty, Destiny, Diablo, Overwatch, StarCraft.

The agency Dow Jones Newswire has no direct relationship to the Dow Jones exchange’s index. The agency is part of the media corporation News Corp c 2007. The same company produces the newspaper Wall Street Journal, Barron’s, the financial website of MarketWatch and operates the analytical agency Factiva.

Owners of Dow Jones sold 90% of the shares of Dow Jones stock indexes for $ 607.5 million to the Chicago-based CME Group in February 2010.

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