May 7 earnings may be good. Beware of guidance.

Copyright © HT Digital Streams Limit all rights reserved. Angela Palumbo, Barrons 3 min Read 09 Apr 2025, 10:23 am Ist the Nvidia Dgx Spark Super Computer Mother Board. Summary analyst estimates for some of the power 7’s full annual earnings have fallen amid a trade war. The beautiful 7 earnings come, and although the impact of rates is not felt in the most recent results, investors should be prepared for possible guidance consequences and CapeX expectations. It is expected that major technology companies will report their most recent financial results at the end of April, with Tesla starting on April 22. This will be the first set of earnings reports, as President Donald Trump has implemented reciprocal rates on some of America’s biggest trading partners. The rates will have varying consequences for each of the power 7 businesses, as no two earn money in exactly the same way. Amazon.com and Apple, for example, are more likely to feel the effects of customers who withdraw as prices on consumer goods and electronics rise. On the other hand, Meta platforms and alphabet can be hit as advertisers withdraw their budgets. “It is very, very difficult to highlight exactly how each particular business will win or lose, and the people who have the best insight into the managers of the company, and for better or worse we will hear from them,” Steve Sosnick, main strategist at Interactive Brokers, told Barron. Regardless of what the consequences are, investors can be certain rates, will be an important topic to listen to conference calls with management, especially when it comes to any guidance for the upcoming quarters or years. “From a technology perspective, I think we could see some earnings pressure if these rates stay in the game for some time,” Marta Norton, investment strategist at Empower, told Barron. She added that it was noteworthy that there were no significant revisions to earnings for technology yet. According to Dow Jones Market Data, the consensus estimate for Tesla’s full annual earnings on April 2 was $ 2.69 a share of $ 2.70 per share, the day Trump announced his new tariff round. Netflix expectations went up to $ 24.69 per share of $ 24.71 per share, Meta estimates went to $ 25.05 per share of $ 25.16 per share, Alphabet went to $ 8.90 per share of $ 8.92 per share, while Apple expectations were $ 7.28 per share of $ 7.31 per share. Nvidia and Amazon’s estimates for the full year’s earnings have not changed. Investors also listen to any updates that the companies share on capital expenses. Companies such as Meta, Amazon and Microsoft have committed to spending billions of dollars on building artificial intelligence infrastructure. Wall Street will want to know if companies choose to cut spending, or continue full steam while the costs are rising and the economic environment remains uncertain. “Many of these management teams will have to focus in the long run. They won’t try to manage their guidance and choices today, based on how investors can respond in the short term,” Norton said. “They will have to do their own assessment in terms of how these rates affect their businesses, and make the best decisions in the long run, and that can mean volatility in the short term.” Write to Angela Palumbo at [email protected], capture all the corporate news and updates on live mint. Download the Mint News app to get daily market updates and live business news. More Topics #US Tech Shares #us Stocks #us Munt Currency Special