The biggest questions facing Big Tech ahead of earnings

The inauguration of Donald J. Trump for his second term as the 47th president of the U.S. took place in the U.S. Capitol Rotunda in Washington, D.C., on Jan. 20, 2025. Among the attendees were Mark Zuckerberg, Lauren Sanchez, Jeff Bezos, Sundar Pichai, and Elon Musk. As tech’s megacap companies begin the first-quarter earnings season, the keyword to listen for is “uncertainty.” President Trump’s fluctuating stance on tariffs has caused market turbulence, prompting investors to assess the potential impact on businesses reliant on imports. The repercussions extend beyond increased costs to include reduced ad spending and a possible slowdown in consumer activity due to higher prices and rising unemployment. Trump’s tariff decisions have faced widespread criticism in the corporate sphere, leading to value losses and even opposition from some of his prominent supporters like Elon Musk. The ever-changing tariff landscape makes it challenging for companies to strategize future operations related to manufacturing locations, hiring decisions, and marketing strategies. Trump recently reduced tariffs for most trade partners for 90 days to facilitate negotiations, although uncertainties remain about the exemptions’ duration, particularly concerning products like phones, computers, and chips. The upcoming earnings reports of major tech companies like Tesla, Alphabet, Microsoft, Amazon, Apple, and Nvidia will likely feature forward-looking inquiries, posing challenges for executive teams amidst the volatile trade environment.