Facebook (FB -2%) has joined what is becoming an exodus from Mobile World Congress, as throngs of companies are electing to stay home amid the coronavirus outbreak.
Cisco (CSCO +1.2%) and Sprint (S +71.2%) have announced withdrawals from the event (the year’s biggest telecom gathering) as well.
Previously, Ericsson, LG Electronics, Ciena, Intel, Nvidia, Sony, InterDigital and Amazon.com announced they wouldn’t be attending.
The conference is still planning to open as normal on Monday, Feb. 24.
Analysts see short-term risk for II-VI
Canaccord Genuity (Buy) lowers its II-VI (NASDAQ:IIVI) target from $46 to $42, citing the near-term coronavirus risk.
The firm says yesterday’s earnings results were “relatively solid,” and Canaccord remains confident in II-VI’s longer-term market position.
Piper Sandler (Overweight, $46 target) notes that the downside Q3 outlook was due to the coronavirus outbreak.
The firm says 5G launches “will provide sustained strength” for IIVI in H2.
IIVI shares are up 6% to $37.50. The company has a Bullish average Sell Side rating.
Wells Fargo raises Nvidia on earnings optimism
Wells Fargo raises its Nvidia (NASDAQ:NVDA) target from $270 to $290 ahead of Thursday’s earnings report.
Analyst Aaron Rakers expects overall positive results with “a notable focus remaining on Nvidia’s reaccelerating Data Center growth,” which could be a key catalyst for shares.
Rakers thinks Nvidia could take a more cautious stance in the guidance due to the potential coronavirus impact.
Wells Fargo maintains an Overweight rating on Nvidia. The company has a Bullish average Sell Side rating.
NVDA shares are up 1.7% pre-market to $267.53.
Spotify paying $250M for the Ringer – Bloomberg
Spotify (SPOT -0.6%) is paying $250M for its acquisition of podcasting firm the Ringer, particularly including $200M up front, Bloomberg reports.
That brings Spotify’s big-money podcasting bet past $600M in deals.
An initial payment of €180M will be followed by more than $50M later, according to the report that comes ahead of a regulatory filing expected to detail the price.
The deal also calls for Ringer founder Bill Simmons to keep working at Spotify for some time, and includes protections against heavy staff cuts.
Verizon the loser as Sprint/T-Mobile win – analyst
Verizon (VZ -2.3%) is the “net loser” from T-Mobile’s and Sprint’s court win, analyst Craig Moffett writes, chiefly due to the respective spectrum situations among major carriers.
It’s no secret that Verizon needs midband spectrum to proceed with 5G deployment, he says, and the merger going forward “takes not just one, but two spectrum options off the table.”
Verizon bet exclusively on millimeter wave, leaving it without a good answer now except to bet on C-band, he adds – and that will take years to deliver usable spectrum in smaller areas.
