Coronavirus is Starting to Hit Big Tech’s Bottom Line

Apple, Amazon, and Facebook have all acknowledged their businesses are being impacted by the global outbreak

The outbreak of the Covid-19 coronavirus disease has taken the lives of over 2,100 people — with all but 11 of those deaths in China — and infected over 75,000 as of February 20. As the world scrambles to contain the public health crisis, global businesses are starting to take a hit, particularly in the technology sector.

It’s still too early to measure the full financial impact of the virus on the tech industry, but the early signs don’t look good. Apple — the world’s most valuable tech company — said it is reducing its revenue targets this quarter in a rare company advisory released on Monday. Tesla said last week that “health epidemics” are a risk to its business. Amazon, whose e-commerce business relies on the flow of goods between China, the US, and other countries, has not released any similar warnings but is stockpiling supplier items from China to protect against future disruptions due to the virus. And Chinese companies themselves are feeling the hit, with tech giant Alibaba calling the outbreak a “black swan” event (as in, unpredictable) on a recent earnings call.

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