Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge. When he's not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
Some companies had their stocks in the news recently as prices changed for different reasons. And one of them is the ongoing coronavirus outbreak.
At pretty much any point in time, the movement of the individual stocks in the equities markets all over the world easily makes news. Analysts are always with their ears to the ground, trying to figure out why certain stocks are performing the way they are. If they soar, most times, it’s a direct effect of certain market factors or decisions the company’s management has made. The same thing can also be said for when they crash.
In recent times, one of the biggest factors affecting the market is the coronavirus. The epidemic has had quite the effect on stocks so much that some of these have fallen. It has also put a dent in the worth of some of the world’s richest people. However, some companies are still making headlines regardless of all of these factors. Whether it’s good or bad news, here are a few.
Microsoft Corporation (NASDAQ: MSFT), like a few other companies, has admitted that the coronavirus is a serious problem. In a statement it released yesterday, the tech giant said that the new coronavirus COVID-19 strain will cause the company to miss its guidance for quite a few parts of its goal for the quarter.
The company said that its supply chain was somewhat disrupted by the epidemic. Although things are returning to normal, Microsoft said it is happening “at a slower pace than expected.”
The news caused Microsoft (MSFT) stock to drop by 2% after hours.
The Jack Dorsey-led financial services company is positive for its investors. The company released interesting figures in earnings for its fourth quarter that surpassed market estimates. Analysts expected earnings of 21 cents per share but Square Inc (NYSE: SQ) reported 23 cents per share. The company also said that its Cash App mobile payment platform now has 24 million monthly active customers. This represents an impressive year-over-year growth of 60%.
The hospitality business is one of the hardest hit by the coronavirus. Regardless, Marriott International Inc (NASDAQ: MAR) has suggested that even though it admits the coronavirus could be a problem, it “cannot fully estimate” how much of a hit the company will take from the epidemic.
Marriott (MAR) stocks made news when they dropped 2% after closing. It recently reported total revenue of $5.37 which did not meet the estimates analysts had at $5.48 billion. However, its earnings per share at $1.57 surpassed analysts’ estimates at $1.47.
It is unclear if Square is worried about the coronavirus and whether or not the epidemic will affect the company.
Booking Holdings (BKNG)
This is another company that has been affected by the coronavirus. Booking Holdings Inc (NASDAQ: BKNG) posted revenue of $3.34 billion with earnings per share of $23.30. This beat analysts’ expectation of $3.28 billion in revenue and $22.04 in earnings per share.
The travel giant’s stocks also made the news when it shed 2% weight as the coronavirus worsened. Worsening this, the company also announced poor guidance as it factored in the epidemic.
But as you see there are some stocks that reacted in another way to the situation that is happening in the market. Etsy Inc (NASDAQ: ETSY) is performing favourably. It jumped an interesting 10% on news of its impressive earnings report. Analysts had estimated $265 million in revenue with earnings at 16 cents per share. The company, however, posted a $270 million revenue with 25 cents earnings per share.