The coronavirus outbreak has taken a significant toll on daily life in China and in turn, the Chinese economy. Several major Chinese companies have experienced disruptions to their operations and this has affected their stocks. Let’s take a look at how the outbreak has impacted some of the leading players in China.
Alibaba (NYSE: BABA) expects the coronavirus outbreak to pose challenges to its business in the near-term. The company stated in its earnings call that its ecommerce business has been impacted by delays in employees returning to work and the inability of merchants and logistics companies to resume operations. The company’s travel booking service, Fliggy, witnessed a significant increase in cancellations for air tickets, tour packages and hotel reservations.
Alibaba believes its overall revenue growth rate for the March quarter will be negatively impacted by the outbreak. Its China Retail Marketplace and Local Consumer Services businesses are also expected to see a negative revenue growth for the quarter. Alibaba’s stock has dropped 8% in the past one month.
Baidu (NASDAQ: BIDU) has forecast its revenues for the first quarter of 2020 to decline 5-13% year-over-year to a range of $3.0-3.3 billion, assuming its core revenue will decline 10-18% year-over-year. This guidance reflects the company’s preliminary view which faces uncertainty due to the fluid nature of the coronavirus situation. Baidu’s stock has dropped 17% in the past one month.
JD.com (NASDAQ: JD) has not witnessed a significant negative impact from the outbreak compared to its peers. The company stated in its conference call that its proprietary supply chain and logistics network helped in resuming operations quickly and in providing uninterrupted service to customers. JD.com said that although large ticket durable goods and discretionary products were impacted by the outbreak, consumer staples such as groceries and household products witnessed a spike in demand. The company expects its net revenues to grow in the double digits for the first quarter of 2020. JD.com’s stock has gained 13% since the beginning of the year.
For technology stocks, 2022 has been a challenging year, with companies losing significant market value amid prolonged stock selloff. In that respect, Salesforce, Inc. (NYSE: CRM) is among the worst-affected
Shares of Macy’s Inc. (NYSE: M) were down on Thursday. The stock has gained 36% over the past three months and 18% over the past one month. The company’s sales
Department store chain The Kroger Co. (NYSE: KR) on Thursday said its third-quarter sales and adjusted earnings increased year-over-year. The latest numbers also exceeded the market's expectations. Net earnings attributable to