ABSTRACT

Throughout 1982, Atari executives were confident they would be able to meet a 50% year-over-year increase in sales, as stated in their financial outlooks. However, during the quarterly conference call on December 7, 1982, it was finally declared that the actual growth was only around 10%. The huge miss from the original, overly optimistic estimates sent analysts and investors into a panic. On Wall Street, Warner immediately lost 32% of its market price, falling from $51.75 to $35.13 a share.