Coronavirus is the most wanted and spoken virus in the world now.
Coronavirus is slowing down the sales of many categories of the market, mainly the Chinese one, such as companies such as Starbucks and Nintendo.
Source and Spread of the Virus
Coronaviruses are a large family of viruses that are common in many different species of animals, including camels, cattle, cats, and bats.
The SARS-CoV-2 virus is a betacoronavirus, like MERS-CoV and SARS-CoV.
All three of these viruses have their origins in bats.
The sequences from U.S. patients are similar to the one that China initially posted, suggesting a likely single, recent emergence of this virus from an animal reservoir.
Early on, many of the patients in the COVID-19 outbreak in Wuhan, China had some link to a large seafood and live animal market, suggesting animal-to-person spread.
Later, a growing number of patients reportedly did not have exposure to animal markets, indicating person-to-person spread.
Chinese officials report that sustained person-to-person spread in the community is occurring in China.
In addition, other destinations have apparent community spread, meaning some people have been infected who are not sure how or where they became infected.
Top affected companies
Readers know my strategy here.
An obvious coronavirus name, I took leave of the name just above $325 post-earnings.
Started the process of reentering the name on Friday afternoon.
My plan had been to try to end up with an average price below $310, and complete a little “extraction of capital” operation.
My thoughts at this time are that perhaps I can get more aggressive, and shoot for a lower net basis.
Another coronavirus name, would love to grab a few shares close to $135 ahead of Tuesday afternoon’s earnings report should that opportunity show it’s face.
Doesn’t report until March. Do I add in the $350’s?
No, I am long 80% of a full position, but give this one a 5% haircut and I would feel motivated to get this one back to 100%.
Reports in late February.
Has moved sideways in a tight range for about a month.
Ready to pop?
One way for the other.
Definitely looking to get back into this one on weakness.
Amazon, Microsoft, and ServiceNow
Sure, Amazon, Microsoft, and ServiceNow all wowed us all with spectacular corporate execution.
Is there more on the way where that came from?
Some tech/software type names have moved sideways, or just plain suffered as the move has been out of risk in spots.
Oh, and not only do these names help folks work from anywhere, but they also don’t have much Chinese exposure.
Would I like to add to Microsoft, or get long either Amazon, or ServiceNow?
Of course, on that note, I have to see an attempt made by either Amazon or NOW to fill the recent gap, to at least fill a decent portion of those gaps to get fired up.
As for Microsoft, I traded out of one third of my long above $172, and would like to add those back on below $169.
Nintendo had planned many events, unfortunately, canceled due to the coronavirus.
According to NintendoHill, February 15, 2020, The Pokemon Company has officially canceled the Pokemon Asia Top League Kyoto 2020, an official Pokemon TCG tournament that would have seen players from six Asian countries.
The reason behind the cancellation is due to the Wuhan coronavirus outbreak, as some players are having difficulties attending the event due to restrictions on travel.
The event, which was scheduled for February 23, 2020, doesn’t have a new date at this time.
This is the second official Pokemon event to be canceled due to the coronavirus.
The first was in Hong Kong.
Starbucks' Results Top Estimates but Coronavirus Slows Sales
It was a happy holiday at Starbucks, but the company’s sales momentum could start to slow due to the coronavirus outbreak in China.
Starbucks said it had intended to raise its full-year earnings guidance Tuesday, but uncertainty about China put that on pause.
Starbucks said it has already closed more than half of its stores in China due to coronavirus.
China’s 4,292 Starbucks stores brought in 10% of the company’s revenue during the October-December period, so the closure will affect earnings, the company said. But it’s not yet clear how much of an impact there will be.
Starbucks had expected full-year revenue growth in the 6% to 8% range and same-store sales growth of 3% to 4%.
“We remain optimistic and committed to the long term growth potential in China,” Starbucks President and CEO Kevin Johnson said in a conference call Tuesday with analysts.
Starbucks shares fell 1.6% to $87.20 in extended trading following the earnings report.
Johnson said the holiday season was one of the best in the company’s history.
New drinks like the Pumpkin Cream Cold Brew were a hit with customers. Starbucks’ new four-story Reserve Roastery in Chicago — which opened in November — is serving an average of 10,000 visitors each day, he said.
A combination of new stores and solid foot traffic helped the Seattle-based coffee giant handily beat Wall Street’s forecasts in the October-December period.
The company opened 539 net new stores in its fiscal first quarter. It now has nearly 32,000 stores worldwide.
Starbucks’ earnings rose 16% to $886 million in the fiscal first quarter.
Earnings, adjusted for non-recurring items like restructuring charges, were 79 cents per share. That beat Wall Street’s forecast of 76 cents.
Starbucks said same-store sales — or sales at stores open at least 13 months — jumped 5% worldwide in the October-December period, ahead of analysts’ forecast of 4.4%.
Revenue was up 7% to $7.1 billion, in line with analysts’ forecasts.
Starbucks Chief Operating Officer Roz Brewer said she’s confident the company can sustain that momentum because of new products and technology in the pipeline.
Starbucks is adding new equipment to stores to improve its cold brew process, she said.
The company also plans to introduce a plant-based sausage sandwich at breakfast and more non-dairy milk based on customer requests, she said.
Starbucks also plans more mobile order and pickup locations in the U.S. after the successful opening of a small-format store in New York during the quarter.
Mobile ordering and payment represented 17% of U.S. sales in the first quarter.