Big Tech is also deliberating the exit path from the coronavirus shutdown.
“We will require the vast majority of our employees to work from home through at least the end of May… and we’re extending our policy of no business travel through at least June,” CEO Mark Zuckerberg wrote in a Facebook (NASDAQ:FB) post.
“Even beyond this next period, guidance from health experts is that it won’t be advisable to have large groups of people get together for a while. Given this, we’re canceling any large physical events we had planned with 50 or more people through June 2021.”
Among the large cloud platforms, Amazon (AMZN -2.6%) Web Services appears the least flexible on customer bills, according to The Information sources.
Customers seeking some financial relief during the coronavirus pandemic have reportedly had better luck negotiating with Microsoft (MSFT -0.3%) Azure and Google (GOOG +1.1%)(GOOGL +1.2%) Cloud.
The cloud platforms have experienced a surge in demand due to the work from home shift, but maintaining positive relationships with long-term customers could help the companies emerge from the pandemic in a stronger position.
AWS contributed $9.95B of Amazon’s $87.44B in revenue last quarter.
JPMorgan is cutting estimates (again) for big telecom services, saying their outlook has deteriorated since its last cut in March.
When it comes to AT&T (T +2.7%) and Verizon (VZ +0.8%), it’s pulling back expectations for wireless service revenues, SMB, and ad revenues (that amid an ongoing ad industry slump).
It has Neutral ratings on the big two telecoms; its price target on AT&T (NYSE:T) is $35, implying 13% upside, and its target on Verizon (NYSE:VZ) is $62, implying 6.7% upside.
The Competition and Markets Authority gives provisional approval to Amazon’s (NASDAQ:AMZN) investment into Deliveroo.
Findings from the CMA probe found that Deliveroo wouldn’t be able to meet its financial obligations and would have to pull out of the market without AMZN’s infusion.
Key quote: “While securing additional funding from other sources may have been possible before the coronavirus outbreak, the pandemic has severely limited the availability of finance for early-stage businesses such as Deliveroo.”
Last year, Amazon reportedly contributed $500M to a $575M round for Deliveroo, which raised questions due to the shuttering of Amazon Restaurants in Britain in 2018.
In December, the competition authority launched a phase 2 investigation after the company refused to provide remedies to antitrust concerns.
Expecting weaker iPhone demand, Goldman Sachs downgrades Apple (NASDAQ:AAPL) from Neutral to Sell.
The firm expects a 36% decline in iPhone units in Q2 and a 24% decline in H1 CY20.
Analysts led by Rod Hall forecast a shallower recovery in early 2021 and “lingering” ASP weakness due to the economic downturn.
Hall also expects the downturn to ding ASP for other Apple products and to slow Services growth.
Goldman drops its Apple target from $250 to $233, a 19% downside.
Apple shares are up 0.9% to $289.17. The company has a Bullish average Sell Side rating.
