Big Tech Earnings Season Kick-Off: AI Spending, Tariffs, and TikTok's Fate in Focus
Earnings Season Preview:
Big Tech's earnings season commences next week, with major announcements expected from Apple (AAPL), Meta (META), Microsoft (MSFT), and more.
Artificial Intelligence (AI):
Expect discussions on AI monetization and capital expenditures for data center construction and model development.
Trump's Impact:
President Trump's policies will significantly impact Big Tech, including potential tariffs, export controls, and antitrust regulations.
Stargate Data Center:
Trump recently announced the Stargate project, a $500 billion AI data center partnership between Softbank, OpenAI, and Oracle (ORCL).
Tariff Avoidance:
Investors will monitor how companies navigate the proposed tariffs on Chinese goods, with Apple seeking to maintain its strong relationship with the President.
Antitrust and Mergers:
Trump's administration could ease antitrust regulations and allow for increased mergers and acquisitions in the tech sector.
CHIPS Act Uncertainty:
Trump has criticized the CHIPS Act, which supports domestic semiconductor manufacturing. Companies like Intel (INTC) may face challenges in their expansion plans.
AI Revenue and Spending:
Virtually all tech companies will disclose AI revenue and spending, with Microsoft expected to have improved AI metrics.
Meta's Restructuring:
Investors will analyze Meta's cap-ex plans following its recent announcement of increased spending.
Google and Amazon's Strong Performance:
Google and Amazon have outperformed expectations in cloud revenue and margins, respectively.
TikTok's Future:
Trump's position on TikTok will influence the potential gain of users and revenue for Meta and Google.
Industry Insights:
Follow Yahoo Finance's "Week in Tech" newsletter for the latest industry updates.
Contact Daniel Howley at [email protected]. Follow him on Twitter @DanielHowley.