The quarterly earnings season for major technology companies has commenced amid a turbulent backdrop of uncertainty since Donald Trump resumed his presidency nearly 100 days ago. The tech industry, which initially anticipated fewer regulations and more opportunities under Trump’s administration compared to Joe Biden’s, now faces significant challenges. Since Trump’s inauguration on January 20, the combined market valuation of key tech giants, often referred to as the “Magnificent Seven”—Apple, Microsoft, Nvidia, Amazon, Tesla, Google parent Alphabet, and Facebook parent Meta Platforms—has declined by $3.8 trillion, or 22%, as of April 20.
This substantial decline is largely attributed to the introduction of sweeping tariffs that have significantly impacted the supply chains of these companies, particularly those dependent on markets like China. While there has been a temporary suspension of the most severe tariffs and an exemption for electronics imports from China, the permanence of this relief remains uncertain as Trump has hinted at the possibility of reintroducing these trade measures.
Beyond tariffs, the tech industry is also grappling with various regulatory challenges. The Trump administration is actively pursuing antitrust cases against several major tech firms, including allegations against Meta for maintaining a social networking monopoly and a lawsuit against Google over its search engine practices. Additionally, ongoing lawsuits from the prior administration against Apple and Amazon continue to pose potential obstacles. Recently, Nvidia faced a setback when it was prohibited from selling a certain AI chip to China, resulting in a $5.5 billion financial charge.
The CEOs of these tech giants are expected to address these issues during their earnings calls for the January-March financial quarter. Tesla will initiate this round of earnings reports on Tuesday, having already disclosed a 13% drop in first-quarter car sales compared to the previous year. This decline coincides with a backdrop of public protests and calls for a boycott, in response to Elon Musk’s prominent role in the Trump administration.
Following Tesla, Google parent Alphabet will release its financial results on Thursday. The remaining companies in the “Magnificent Seven” will announce their earnings next week, with Amazon on April 29, Meta and Microsoft on April 30, and Apple on May 1. Nvidia will conclude the earnings season on May 28 with its report, as the company follows a fiscal year ending in January.