Tuesday’s Headlines: Apple Stock Falls Upon Coronavirus Fears
1. Apple’s high revenue exposure in China saw the company’s stock drop almost 3% on Monday as fears of the deadly coronavirus’ spread have battered the market. Apple reported $43.6 billion in revenue in 2019 from “Greater China,” — 16.7% of its total revenue — including Taiwan and Hong Kong, all of which have reported cases of coronavirus exposure, thus potentially limiting sales. However, ahead of Apple’s earnings report later today, analysts expect the company to show that the majority of product sales took place prior to the January period. Get the full story here.
2. Another company hit by the coronavirus was Disney, which fell 3% on Monday, having closed its Shanghai Disneyland park indefinitely last week. The closure comes at a peak travel time in the region due to the Lunar New Year festival, while theatres across the country have also been closed, which could impact the anticipated release of the studio's China-based release, ‘Mulan’. However, analysts believe that downward pressure on earnings will be limited relative to the company’s overall financials and that investors are still primarily focused on the “outsized” success of streaming service Disney+. Read a complete report here.
3. Shares in Amazon fell on Monday following the company’s reaction to hundreds of employees threatening to strike. More than 340 Amazon employees signed onto a post published Sunday criticizing the company’s climate stance and protesting its external communications policy. The protest was intended to show support for two Amazon employees who the company threatened to terminate for publicly criticizing its climate policies, with the company maintaining its stance that the employees are in the wrong. Read the complete story here.