From CNBC: 2025-04-21 09:19:00

Mark Zuckerberg, Lauren Sanchez, Jeff Bezos, Sundar Pichai, and Elon Musk attend Donald J. Trump’s second presidential inauguration in Washington, D.C. Tech megacap companies brace for a volatile first-quarter earnings season as Trump’s tariffs cause market chaos and uncertainty. Companies face increased costs, reduced ad spending, and potential consumer spending slowdown due to rising prices and unemployment. Corporate world universally disapproves of tariffs, with trillions of dollars in value lost, and even vocal supporters like Elon Musk opposing them. Tariff uncertainty hampers companies’ future planning, manufacturing decisions, hiring, and marketing strategies.

Tesla faces challenges in its Tuesday earnings report amidst a 40% stock drop this year. Musk’s outside distractions, lack of clarity on tariffs, and reliance on Chinese and Mexican suppliers make forecasting difficult. Analysts project minimal revenue growth, and investors await Musk’s insight on the impact of tariffs. Tesla struggled with deliveries, offering incentives to attract customers amid market turmoil.

Alphabet, parent company of Google, faces concerns about tariffs affecting the economy and ad spending. Google’s cloud business and imported data center infrastructure could be significantly impacted by tariffs. Investors worry about a potential reduction in ad spending and revenue due to global economic uncertainty. Alphabet aims to adjust spending levels to navigate the tariff impact.

Meta, with a focus on digital ads, faces potential revenue losses from the impact of tariffs on China and U.S. trade relations. Analysts warn of revenue exposure due to lower ad spending by companies amid a weakening economy. Meta’s reliance on China revenue and concerns about reduced ad spending on social media pose significant challenges. Meta’s data center costs could rise due to tariffs, impacting the company’s financial results.

Microsoft faces higher costs for hardware due to tariffs, impacting its cloud services and customer spending. The company plans significant data center investments to handle AI workloads. Analysts expect software sales to decline amid lengthening sales cycles. Microsoft and Salesforce are seen as better positioned to manage higher tariffs, with the flexibility to adjust spending levels to maintain earnings.

Amazon’s e-commerce dominance faces challenges from tariffs impacting third-party merchant sales and vendor purchases. Amazon canceled orders from Chinese vendors following tariff announcements, and sellers may increase prices. Investors watch for the impact of tariffs on Amazon’s online business and advertising unit. Amazon may capitalize on supply chain disruptions and gain an advantage in retail and e-commerce amid tariffs.

Apple’s dependence on Asian manufacturing for devices makes it vulnerable to tariffs. Stock declines reflect concerns about the long-term impact of tariffs on Apple’s business. Tim Cook’s relationship with Trump and Apple’s mitigation efforts through supply chain diversification draw investor scrutiny. Apple faces uncertainty about cost increases, inventory management, and margin impact due to tariffs.



Read more at CNBC:: Tesla and Alphabet facing tariff uncertainty