Market Overview

For Some Companies, A Sliver Of Good News During COVID-19

For Some Companies, A Sliver Of Good News During COVID-19

We have all seen how the coronavirus outbreak has impacted the stock market in the past weeks. And though there's plenty of reasons to be negative, there are a few companies that could benefit from this crisis.

The FAANG stocks, Facebook, Inc. (NASDAQ: FB),, Inc.  (NASDAQ: AMZN), Apple Inc. (NASDAQ: AAPL), Netflix, Inc. (NASDAQ: NFLX), and Google (Alphabet Inc. (NASDAQ: GOOG)), could manage to get through this crisis relatively unscathed, as social distancing has made people rely much more on digital services, whether those are online shopping and delivery, using more streaming services, or social media.  So it is not a surprise that both Facebook and Twitter, Inc. (NYSE: TWTR) reported an increase in the usage of their services.

On the other hand, any potential recession could hurt these companies' advertising revenue, as this is usually one of the first areas companies cut costs during downturns.  But even with a drop in advertising, most big tech companies are generating tens of billions of dollars in free cash flow, assuring investors there is no chance of liquidity risk in any of these bad scenarios.

Nike Reported Growth In Digital Sales

Nike, Inc. (NYSE: NKE), which had to temporarily close all of its stores in China when the outbreak first hit, reported this week that 80% of its shops in China were reopened. Closing of its shops in China brought a decline of 5% in sales in the last financial quarter (which ended in February), the first drop in sales in China after almost six years. This drop could have been even higher had there not been a strong increase in online sales by 36%. Speaking of positive effects of social distancing, Nike's personal training app usage was up 80% in China during the lockdown. 


Though the overall macro picture remains bleak in the short-term, there are some bright spots in the market. While we won't get a true reading of how the past few weeks have impacted major businesses for several more weeks when earnings season begins, it's at least reassuring that the news isn't all bad. Hopefully, the news that everybody wants to see—that we've contained the spread of the virus—comes sooner rather than later. 


This article is not a press release and is contributed by Ivana Popovic who is a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure . Ivana Popovic does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: Contributors – IAM Newswire accepts pitches. If you're interested in becoming an IAM journalist contact: Questions about this release can be send to

The post The COVID-19 Apocalyptic Scenario – Luckily, Not for Tech and Those Relying on Tech! appeared first on IAM Newswire.

Photo by Thomas Serer on Unsplash

The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.


Related Articles (AAPL + AMZN)

View Comments and Join the Discussion!

Posted-In: IAM NewswireOpinion Markets