Some companies are part of the coronavirus economy. The rest are in trouble

Some companies are part of the coronavirus economy. The rest are in trouble
Share

London (CNN Business)The coronavirus pandemic has split companies into two camps: Some have been able to keep operating and are even thriving. But others have been brought to their knees.

In recent weeks, as companies have shared details on their earnings during the first three months of the year, this divide has become increasingly pronounced.

Some businesses — the drugmakers, the grocers, the tech giants — have been able to power ahead despite stay-at-home orders. Microsoft’s cloud services sales have skyrocketed, and Nintendo’s “Animal Crossing” game has been a quarantine hit. Eli Lilly (LLY) received approval from the US Food and Drug Administration for its new cancer treatment last week.

But a larger subset of companies have found themselves on the sidelines, cut off from their customers or facing little to no demand for their products.

Titans of industry, including Disney (DIS), the world’s biggest entertainment company, and Marriott (MAR), the world’s largest hotel chain, have reported plunging profits as theme parks and movie theaters closed and travel ground to a halt. They gave cautious assessments of the challenges ahead.

Submit a Comment