As Big Tech's earnings season progresses, a distinct trend emerges: companies like Alphabet, Amazon, Meta, and Microsoft have largely avoided the adverse effects of Trump's tariffs, particularly in AI and advertising sectors. In contrast, Apple warns of a significant financial hit, forecasting a $900 million charge in the upcoming quarter due to tariff implications. Analysts highlight the resilience of AI-attributed earnings, with firms like Amazon attributing their profitability amidst tariff uncertainties to preemptive inventory management and limited price increases by third-party sellers. The overall sentiment suggests that clearer policy from Washington is needed to navigate ongoing tariff-induced challenges.
[Management] noted limited direct impact from tariffs on the Q2 profit guide, driven by pre-buying inventory and limited seller impact so far.
There remains plenty of uncertainty on the tariff cost impact beyond the June quarter, but we are assuming a 30% China tariff.
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