Microsoft saw $62 billion of market value erased after it said coronavirus will hit profits this year. Here are 6 other companies that have issued similar warnings - and how much they've lost
- Several companies have lowered or withdrawn their forward-looking revenue estimates as the coronavirus tears into operations.
- Microsoft was the most recent to warn investors of the outbreak's effect on financials, announcing Wednesday its Windows and Surface businesses would see worse-than-expected sales due to supply chain disruption.
- The announcement drove Microsoft stock down as much as 4.8% in Thursday trading, wiping out as much as $62 billion in market value.
- Here are six industry leaders that recently cut guidance due to the coronavirus epidemic, and how much of their market cap was erased the following trading session.
- Visit the Business Insider homepage for more stories.
More companies are updating their forward guidance to reflect coronavirus fallout, and investors aren't enjoying the results.Microsoft announced on Wednesday its sales in the first quarter of 2020 would be lower than initially expected due to virus-related supply chain issues. The tech giant joined several other US firms quantifying the hit to their regular operations, including Apple, Mastercard, and Royal Caribbean Cruises.Advertisement
The slashed projections are among the many results of coronavirus' effect on global markets. The Dow Jones Industrial Average and the S&P 500 entered correction territory on Thursday as US stocks sank for the sixth straight trading session. The 10-year Treasury yield has notched numerous record lows as investors piled into defensive assets. Gold, a traditional hedge against tumbling stocks, hit its highest level since 2013 on Monday.
Several economists are now warning investors of a prolonged hit to equity prices as the outbreak spreads further around the world. The S&P 500 could slip to its lowest level since June on virus fears, Goldman Sachs said in a Thursday note, adding that US firms will fail to grow profits in 2020. Former Federal Reserve chief Janet Yellen alerted on Wednesday that the US could fall into a recession if the coronavirus epidemic escalates.Companies' updated forecasts serve as the most material sign yet of a direct hit to future stock performance. Here are six US firms that have cut their guidance on coronavirus fallout, and how much market cap was erased the following trading day.
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