DOW JONES21,413.44+469.93 2.24%
S&P 5002,526.90+56.40 2.28%
NASDAQ7,487.31+126.73 1.72%

Loup Ventures' Munster Says Apple 'Is Doing It Right' With Coronavirus Response

Loup Ventures managing partner Gene Munster on Saturday applauded Apple Inc. (NASDAQ: AAPL) for its response to the novel coronavirus (COVID-19) outbreak globally.

Benzinga · 03/16/2020 02:16

Loup Ventures managing partner Gene Munster on Saturday applauded Apple Inc. (NASDAQ: AAPL) for its response to the novel coronavirus (COVID-19) outbreak globally.

What Happened

Apple announced earlier in the day that it would close all its retail stores outside of Greater China until March 27 to reduce the chances of community spread of the coronavirus that has killed 6,440 people worldwide.

According to Munster, retail stores account for about 8% of Apple's revenue. He added that at least some of the store sales would shift online during the outbreak, offsetting the impact.

Nevertheless, the Loup Ventures executive believes that the consumer electronics company is likely to lose 1-2% of revenue from the store closures for the quarter ending in March.

At the height of the outbreak in China, Apple said it expected to miss its previously issued earnings guidance for the quarter.

"Apple is doing it right, winning the long game in the hearts and minds of consumers by treating them with compassion," Munster said, noting a host of other measures taken by Apple.

The Cupertino-based company has said it would not impose any penalty for Apple cardholders who can't make their March payments on time, as noted by Munster.

Apple would match employee donations two-to-one and give flexible work options to employees and third-party contractors without worrying about losing pay.

Nike Inc. (NYSE: NKE) announced similar closure of retail stores in the United States, Canada, Western Europe, Australia, and New Zealand until March 27.

Price Action

Apple's shares closed 11.98% higher at $277.97 on Friday.