Categories Retail, Technology

How has COVID-19 impacted these major Chinese stocks?

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

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.

Also read: A look at how Dick’s Sporting Goods (DKS) will fare going forward

Baidu

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

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.

Also Read:  Workiva Inc. (WK) Q2 2020 Earnings Call Transcript

Follow our Google News edition to get the latest stock market, earnings and financial news at your fingertips.

Most Popular

Yelp Q2 earnings: All key figures

Yelp (NYSE: YELP) reported second-quarter financial results after the regular trading hours on Thursday. The results were better than what the street had anticipated. YELP shares rose 4% immediately following the

Infographic: Uber (UBER) Q2 loss narrows; revenue beats

Uber Technologies (NYSE: UBER) reported its second-quarter 2020 financial results after the regular trading hours on Thursday. Revenues exceeded the estimates, while the bottom-line missed. Shares of the ride-hailing company

TMobile (TMUS) Q2 revenue up 61%; results beat Street view

TMobile US Inc.  (NASDAQ: TMUS) on Thursday announced financial results for the second quarter of 2020, reporting a 61% increase in revenues aided by strong customer growth. The results also

Top