Microsoft, Walt Disney, Gilead Sciences: Stocks That Defined the Week -- WSJ
February 29 2020 - 3:02AM
Dow Jones News
By Francesca Fontana
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (February 29, 2020).
Microsoft Corp.
The coronavirus epidemic is roiling some of the biggest names in
tech. Microsoft said Wednesday it expected its personal-computing
segment, which generated about 35% sales in the previous quarter,
to see sales fall short of expectations. This warning came after
Apple Inc. lowered its earnings outlook last week as the spread of
the virus limited iPhone production and curtailed Chinese demand.
Earlier this month graphics chip maker Nvidia Corp. said it
expected a $100 million hit to this quarter's earnings. Microsoft
shares fell 7.1% Thursday.
Intuit Inc.
The maker of TurboTax is nearing a deal to buy personal-finance
portal Credit Karma Inc. Intuit's purchase of the personal-finance
portal for about $7 billion in cash and stock would give the
bookkeeping-software giant a stronger foothold in consumer finance.
The potential acquisition, reported by The Wall Street Journal on
Saturday, also would mark Intuit's largest acquisition by far in
its 37-year history and the first sizable transaction under Chief
Executive Sasan Goodarzi, who took over a little more than a year
ago. Credit Karma was valued at roughly $4 billion in a private
share sale about two years ago. Intuit shares fell 3.7% Monday.
Walt Disney Co.
There is a new ruler of the Magic Kingdom. Robert Iger stepped
aside as chief executive of the entertainment conglomerate Tuesday,
naming the company's head of parks and resorts, Bob Chapek, CEO
effective immediately. Current and former Disney executives say Mr.
Chapek's experience heading key Disney units put him ahead of other
potential successors to Mr. Iger, helping him beat out internal
competitors such as Kevin Mayer, who oversees the company's
streaming service. Mr. Iger will retain significant power over the
company as executive chairman, overseeing the company's creative
endeavors through the end of next year, when his contract expires.
Disney shares fell 3.8% Wednesday.
Marriott International Inc.
Companies with high exposure to travel and tourism are tearing
up their 2020 expectations as the new coronavirus spreads. The
latest sign came from Marriott, which said Wednesday that fee
revenue will take a hit in 2020. The world's largest hotel company
could see a $25 million reduction in that revenue a month this year
compared with its outlook, assuming current low occupancy rates in
the Asia-Pacific region continue. Marriott's CFO said the company
has about 800 hotels in the region. Of those, 89 hotels in Greater
China -- an area that encompasses mainland China, Hong Kong, Macau
and Taiwan -- aren't accepting reservations at the moment. Marriott
shares fell 0.1% Thursday.
Gilead Sciences Inc.
The pharmaceutical company is hoping to produce the first
medicine specifically approved to treat the new coronavirus. Gilead
said late Wednesday that in March it will conduct two studies of
its drug, remdesivir, with a total of 1,000 patients across mainly
Asian countries, as well as other nations with high numbers of
diagnosed patients. Two sets of clinical trials are already
studying the drug. If successful, Gilead's studies would help
contribute to a larger data set needed to win regulatory approval
for the drug. Gilead shares fell 2.7% Thursday.
Best Buy Co.
Unlike many traditional retailers, Best Buy had a happy holiday
shopping season. The company said Thursday that sales rose during
the critical period at the end of 2019, citing strong demand for
phones and appliances. Best Buy has undergone a significant
turnaround in the past six years, avoiding the fate of Sports
Authority, Toys 'R' Us and other retailers that tend to stock goods
focused on a single category. The retailer has shifted strategies,
matching prices to competitors, adding services to reduce the
company's reliance on new product releases and using its stores to
fulfill online orders. Still, shares fell 4.7% Thursday amid a
broader market selloff.
Salesforce.com Inc.
Marc Benioff now has the corner office all to himself.
Salesforce is ending its experiment with dual CEOs as the
business-software provider announced Tuesday that Co-Chief
Executive Keith Block would be stepping down just 18 months after
taking the job. Mr. Block, a former Oracle Corp. executive, joined
Salesforce in 2013 as president and vice chairman. He became co-CEO
in 2018 in an unusual setup that paired him with Mr. Benioff, a
Salesforce co-founder. Mr. Block had oversight of day-to-day
operations while Mr. Benioff led Salesforce's vision and
innovation, among other areas. Salesforce shares fell 1.3%
Wednesday.
Write to Francesca Fontana at francesca.fontana@wsj.com
(END) Dow Jones Newswires
February 29, 2020 02:47 ET (07:47 GMT)
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