Thursday’s Headlines: Microsoft Forced To Update Revenue Guidance Due To Coronavirus
1. Microsoft shares fell 2% in extended trading on Wednesday after the company said it doesn’t expect to meet the quarterly revenue guidance for Windows. The move comes during a week that has seen a market selloff amid fears about the virus, and a week after Apple updated guidance on iPhone revenue for the same reason. “Although we see strong Windows demand in line with our expectations, the supply chain is returning to normal operations at a slower pace than anticipated at the time of our Q2 earnings call,” Microsoft said in a statement. Get the complete report here.
2. In another sign of a strained partnership, Tesla and Panasonic are reportedly ending their joint production of solar cells at Tesla’s Gigafactory 2 facility in New York, sending Tesla stock down 3% on Wednesday. The two companies formed a joint venture to manufacture solar cells there four years ago, with Panasonic paying for part of the equipment needed in the Buffalo plant. While Panasonic-made solar cells were going to be used primarily by Tesla to make its own solar panels, Tesla’s current Solar Roof product uses cells made in China instead. Neither company has responded to the report. Read more here.
3. Some earnings from the MyWallSt family after-hours on Wednesday:
The travel-commerce company came out with quarterly earnings of $23.30 per share on revenue of $3.34 billion, up 5% year on year, and beating earnings expectations by nearly 2%. Booking Holdings shares have lost about 15.9% since the beginning of the year versus the S&P 500's -3.2% as the travel sector suffers from coronavirus panic. Full story here.
The artisan e-commerce specialist saw shares jump 13% in after-hours trading Wednesday after reporting net income of $31.3 million, or $0.25 per share, with revenue up 35% year on year to $270 million. Etsy stock is down nearly 30% over the last 12 months as it faces stiff competition from more established e-commerce giants such as Amazon. Read more here.
The digital payments leader popped 6% after hours after reporting an earnings rise of 64% to $0.23 per share on net revenue of $1.31 billion, which beat expectations. For fiscal 2020, guidance came in at $5.9 billion to $5.96 billion. Square has been gaining ground in 2019 on its main competitor, PayPal’s Venmo, with users growing 60% to 24 million. Read more here.
The remote-medical software company came out with losses per share of $0.26 on revenue of $156.49 million, beating analyst expectations of a wider loss. Teladoc shares have added about 41.4% since the beginning of the year versus the S&P 500's decline of -3.2%, as coronavirus fears force potential victims into quarantine. Read more here.