Today we are watching…
1. Facebook (#fb)
We live in ‘need-to-know’ times, and Facebook can see it in WhatsApp and Messenger’s user spikes. In countries worst-hit by the virus where face-to-face communication is not happening, messaging has increased by 50%. In Italy, the time spent on Facebook’s apps has increased by 70%! However, the engagement isn’t translating into more dollars. Facebook doesn’t run ads on many of the platforms that are doing well, and executives at the top don’t even know if they can keep services up when new internet traffic records are set every day. Analysts have gone cold on the company after initially projecting a jump in sales. Facebook hasn’t updated its quarterly revenue guidance.
2. Nike (#nike)
With investors from all around the world watching, Nike reported its financials yesterday. It noted a five per cent drop-off in Chinese sales thanks to a robust online presence, better than many predicted, and it said that consumers there were finally returning to stores. 80% have reopened in China. Time spent on personal training apps has also skyrocketed. The news buoyed shares in Peloton Interactive, the home workout company, but was blunted for Nike by the one-year delay of the Tokyo Olympics. The sportswear brand had been gearing up for a lucrative summer but instead will reschedule specific product launches.