Is Marriott Stock a Buy?
Clearly, the coronavirus pandemic, with widespread business closures and stay-at-home orders around the globe, has affected Marriott International's (NASDAQ: MAR) results. Marriott has worldwide operations, and the disease initially hurt the company's Asian operations and subsequently its other regions, including its North American business, as state and local governments ordered people to stay home and forced non-essential businesses to close their doors. In the United States, the Centers for Disease Control and Prevention continues to recommend staying home as much as possible and avoiding unnecessary travel.
Hence, it's not surprising that Marriott's first-quarter results saw revenue fall by 7% year over year and GAAP diluted earnings per share drop by more than 90%. While management cannot estimate COVID-19's impact on future results, it stated the illness will have a material and greater effect. No one knows how long the pandemic and government's restrictive rules will last, but certainly, Marriott's second-quarter results will continue to show the negative consequences.
Under present conditions, it's no wonder the share price is down some 40% from the mid-$140 range since late February. After the marked price drop, should you scoop up shares?
Source Fool.com
