Apple CEO Tim Cook attends the annual session of China Development Forum (CDF) 2018 at the Diaoyutai State Guesthouse in Beijing, China March 26, 2018.
Jason Lee | Reuters
Check out the companies making headlines midday:
Nvidia, Advanced Micro Devices — Shares of Nvidia sunk more than 5% and Advanced Micro Devices tanked more than 6% as investors worried about the coronavirus’ impact on global growth. Semiconductor stocks could have a lot to lose from a dent to the global supply chain, with a good portion of their revenues coming from China, especially from iPhone production.
Las Vegas Sands, Wynn Resorts, MGM Resorts — Major casino stocks with exposure to Macao dropped on Monday morning as coronavirus cases accelerated outside of China. Shares of MGM Resorts were down about 4.2%, while Las Vegas Sands fell 3.4% and Wynn Resorts dropped 2.7%. All three stocks are down 8% or more so far in 2020.
Apple, Nike — Tech giant Apple slid more than 4% as the coronavirus outbreak weighed on the broader market. Nike shares were also down more than 3%, amid concerns from investors that the two companies’ supply chains will be disrupted by the outbreak, while also leading to soft demand in the key Chinese market.
L Brands — L Brands shares dropped 3% after a Baird analyst downgraded them to neutral from outperform. “While we still see a path to value creation over time, and view current valuation as relatively attractive given BBW’s robust recent performance, these positives are balanced by some elevated near-term risk factors,” the analyst said in a note.
Tilray — Shares of Tilray tumbled more than 8% after Cowen downgraded the cannabis grower to market perform from outperform. Cowen said headwinds that have plagued the industry, including pricing, stores and inventory, don’t appear to be fading.
Berkshire Hathaway — The Warren Buffett-led conglomerate reported a 23% drop in operating profit for the fourth quarter, pushing the stock down more than 2%. However, a surge in Apple last year, Berkshire’s largest stock holding, led to Berkshire having record full-year earnings.
Beyond Meat — Shares of the plant-based meat maker slid more than 3% on news that privately held Cargill plans to enter the meatless meat business in April.
Intuit — Intuit shares fell more than 2% after The Wall Street Journal reported the company is nearing a deal to buy Credit Karma for about $7 billion in cash and stock. Under the agreement, Credit Karma would operate as a standalone business.
Zoom Video Communications — The teleconferencing software company’s stock climbed 6% to new record highs in trading as investors looked to Zoom Video as one of the few beneficiaries from the outbreak of coronavirus. As the broader U.S. stock markets sold of sharply following reports of more coronavirus cases outside China, shares of Zoom Video rose 2.83%, with CNBC’s Jim Cramer noting the company “can barely meet” demand for orders as U.S. employees in China are forced to work remotely.
CNBC’s Pippa Stevens, Maggie Fitzgerald, Michael Sheetz, Michael Bloom, Yun Li and Jesse Pound contributed to this report.