Big Tech enters earnings season bruised by Trump administration turmoil

As Big Tech kicks off its quarterly earnings season this week, the industry’s bellwether companies have been thrust into a cauldron of uncertainty and turmoil that they didn’t anticipate when Donald Trump re-entered the White House nearly 100 days ago.

Since President Trump’s Jan. 20 inauguration, Big Tech stocks have been on a see-sawing ride that has eviscerated trillions of dollars in shareholder wealth amid an onslaught of tariffs and other potentially detrimental actions.

It’s the polar opposite of what Apple CEO Tim Cook, Tesla CEO Elon Musk, Google CEO Sundar Pichai, Facebook founder Mark Zuckerberg and Amazon founder Jeff Bezos hoped for when they assembled behind Trump as he was sworn in.

That display of unity reflected a belief that Trump’s second stint in the White House would be a refreshing change from the heavy-handed regulation of President Joe Biden’s administration while unleashing even more lucrative opportunities in artificial intelligence and deal-making.

But the Trump administration’s policies so far have vexed Big Tech’s “Magnificent Seven” companies — a group consisting of Apple, Microsoft, Nvidia, Amazon, Tesla, Google parent Alphabet and Facebook parent Meta Platforms. Since Trump’s inauguration, the Magnificent Seven’s combined market value has plunged by $3.8 trillion, or 22%, as of April 20.

The financial damage was even more severe a few days after Trump’s April 2 unveiling of sweeping reciprocal tariffs that would have exacted a heavy toll on Big Tech’s supply chains in China and other key markets around the globe. A temporary freeze on the majority of the most punitive tariffs and an exemption from most of the fees on electronics coming in from China has provided some relief, but Trump has made it clear the reprieve may be short-lived.

That has left the specter of Trump’s ongoing trade war hanging over Big Tech, whose influence extends around the world.

“The mass confusion created by this constant news flow out of the White House is dizzying for the industry and investors and creating massive uncertainty and chaos for companies trying to plan their supply chain, inventory, and demand,” Wedbush Securities analyst Dan Ives said.

Besides the upheaval triggered by Trump’s tariffs, his administration is also in the midst of trying to prove regulators’ allegations that Meta has been running an illegal monopoly in social networking, and working to persuade a federal judge to break up Google after its search engine last year was found to be illegally abusing its power. Trump also has given no indication of abandoning antitrust lawsuits filed by the Biden administration that aim to hobble Apple and Amazon.

And Nvidia absorbed a significant setback last week when the Trump administration banned it from selling one of its popular AI chips to China, prompting the company to record a $5.5 billion charge to account for the stockpile of processors that it intended to export to that country.

Tech CEOs will get a chance to discuss the fallout from the trade war and other challenges still ahead during analyst conference calls that will be held as part of their companies’ financial reports for the January-March quarter.

The ritual will kick off Tuesday when Tesla is scheduled to release its full financial report after already revealing that its first-quarter car sales dropped by 13% from the same time last year.

The decline occurred against a backdrop of vandalism, widespread protests and calls for a consumer boycott amid a backlash to Musk’s high-profile role in the White House overseeing a cost-cutting purge of U.S. government agencies.

After Musk discusses his strategy for reversing a decrease in Tesla’s market value since he joined Trump in the White House, Google parent Alphabet Inc. is scheduled to announce its results on Thursday. Then four of the Magnificent Seven will get their turn next week: Amazon on April 29; Meta and Microsoft on April 30; and Apple on May 1.

Nvidia, which operates on a fiscal year ending in January, is scheduled to wrap things up on May 28 with the release of its quarterly results.

—Michael Liedtke, AP Technology Writer

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