Business

Big Tech’s earnings problem is estimates may be way too high

There’s little expectation executives will be able to give estimates with any degree of confidence, given the high level of macroeconomic uncertainty.

The last time Big Tech delivered earnings, Donald Trump had just started his second term, stocks were soaring on expectations of a pro-growth agenda and investors’ main worry was how long it would take companies to convert their artificial intelligence spending into profits. Three months later, they are facing a far bleaker picture. This week’s quarterly results from Microsoft, Apple, Meta Platforms and Amazon.

com will land in a market obsessed with every twist of a trade war that’s wiped $5.5 trillion from the S&P 500 Index. AI concerns have taken a back seat to angst over the possibility of a tariff-induced recession, while safe havens like gold have become the trade de jour for investors too rattled to buy stocks on the cheap.

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