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Giant Company’s Officials Are All Raising Concerns About The Potential Impact Coronavirus Could Have On Companies

Giant Company’s Officials Are All Raising Concerns About The Potential Impact Coronavirus Could Have On Companies
The Siliconreview
30 January, 2020

Some of the world's biggest corporations are now worried by a deadly spreading virus. 27 separate S&P Composite 1500 companies have mentioned the word "virus" or "coronavirus" on earnings calls this week according to CNBC reporting using FactSet. More than 6,100 people in China have been infected by the Wuhan virus, exceeding the number of cases from the SARS virus of 2003. The virus threatens Chinese off-homecitizens, prompting governments to impose or enact travel bans and attempting to pull investors away from stocks that depend on Chinese consumers. Currently, the virus in major US companies, including Apple, Starbucks and McDonald's, is troubling management.

Despite Apple's blowout earnings Tuesday, Apple's next quarter guidance range is wider than usual. CEO Tim Cook related this move to fear due to the deadly coronavirus that started circulating through parts of China. Apple said it is collaborating with its Wuhan-area suppliers to minimize any loss of supply.

Starbuckshave shut-down half of its Chinese stores as the country is fighting against the spread of virus. Executives said the remaining open Chinese stores saw sales slow down on Wednesday compared to historical figures, taking the stock down 2.1 percent.