Huawei slashes its revenue forecast
The company’s CEO says the revenue will be $30 bln below forecast over next two years
Stocks impacted: Huawei Technologies Co Ltd (002502)
Huawei Technologies Co Ltd's founder and CEO Ren Zhengfei said the impact of a U.S. ban on the Chinese company was more severe than expected and warned that revenue would dip to around $100 billion this year and the next. He also noted that the Chinese telecom giant will reduce capacity but that US moves to restrict its business “will not stop us.” As a reminder, the US has put Huawei on a blacklist, meaning that American companies that want to sell parts to Huawei will need approval from the US Commerce Department. The ban has forced companies, including Alphabet Inc's Google and British chip designer ARM, to limit or cease their relationships with Huawei. Huawei had reported revenue of 104.16 billion last year and said a few months ago it expected revenue this year to jump to $125 billion.
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