As earnings season unfolds, tech executives are scrutinizing how the Trump administration's new trade war might affect their operations. Companies such as Meta (META), Microsoft (MSFT), Amazon (AMZN), Apple (AAPL, Financial), and Spotify (SPOT) are set to release their earnings reports soon, with investors watchful of tariff impacts on supply chains and shipments, particularly in China. While some products enjoy temporary tariff exemptions, the lack of clarity around tariff schedules poses short-term sales risks.
Alphabet (GOOGL) has shown strong performance but warns that shifting international environments could slightly impact its advertising business, with potential cuts in ad spending from Chinese e-commerce platforms like Shein and Temu. Meta and Amazon face similar risks, especially Amazon, which heavily relies on Chinese suppliers. If the 145% tariff is enacted, Amazon may face increased pressure.
On a positive note, Intel (INTC) has seen benefits from preemptive consumer purchases amid rising tariff concerns. Apple might also experience short-term revenue boosts from early iPhone upgrades, though analysts warn of potential demand slowdown.
Meanwhile, ServiceNow (NOW) sees sustained IT spending, signaling potential benefits for Microsoft. Despite economic uncertainties, Netflix (NFLX) and Spotify see consistent consumer spending, indicating optimism for upcoming financial results. Tesla (TSLA), however, faces potential challenges from a 25% tariff on imported cars and parts, causing concern over its future outlook.
