From Yahoo Finance: 2025-05-08 07:50:00

Big Tech’s earnings season reveals AI and advertising companies like Google, Amazon, Meta, and Microsoft are thriving despite Trump’s tariffs, while Apple faces challenges. Alphabet raised dividend and buybacks, Meta provided strong guidance, Amazon had a lighter outlook, and Microsoft saw healthy cloud sales. Apple warns of a $900 million charge.

Apple’s latest quarter saw better-than-expected results, but the company anticipates challenges ahead due to tariffs. CEO Tim Cook warned of a $900 million charge in the current quarter and noted uncertainty for the June quarter. Analysts predict Apple may partially mitigate tariffs for a 45.3% gross margin in the September quarter.

Big Tech’s cloud and AI giants navigate economic challenges smoothly, while Apple struggles with tariff impact. Washington’s shifting tariff policies add to the uncertainty. Advertising and AI spending remain strong for companies like Alphabet, Amazon, Meta, and Microsoft amid tariff fears.

Alphabet’s advertising revenue surpassed expectations, while cloud revenue fell slightly short but was not a concern. Amazon reported strong sales, Microsoft’s cloud business grew 20%, and Meta remains optimistic. Apple’s tariff challenges are complex due to its China presence, while Cook grapples with potential semiconductor tariffs.

Apple faces complex challenges with tariffs, moving iPhone production to India, and uncertainties from Trump’s Section 232 investigation. Cook’s decisions on tariffs will shape Apple’s future. Microsoft’s cloud business grows, Meta remains stable, and Alphabet’s strong ad performance shows resilience in the face of tariff uncertainties. Apple faces higher stakes in tariff battles compared to its competitors. Stay informed with Yahoo Finance’s Week in Tech newsletter. Follow Daniel Howley on Twitter @DanielHowley for more updates. For the latest earnings reports, analysis, and company news, visit Yahoo Finance’s website. Stay up to date on financial and business news with Yahoo Finance.

Read more: AI and ad tech are safe from Trump’s tariffs so far