- Tesla and Alphabet report earnings this week, setting the tone for Big Tech results
- Tesla’s stock has fallen over 40% in 2025, with the company facing declining sales
- Alphabet’s results come amid concerns about AI spending and potential tariff impacts
- Other Big Tech companies (Meta, Microsoft, Amazon, Apple) report next week
- Fed officials’ remarks will be closely watched after Powell’s comments on tariffs and inflation
Tesla and Alphabet are set to release their earnings reports this week, marking the start of what could be a challenging earnings season for Big Tech companies. Their results may establish the tone for the rest of the Magnificent 7 tech giants who have all experienced double-digit stock declines in 2025 so far.
Tesla will report after the closing bell on Tuesday, while Google parent Alphabet will release its results late Thursday. These reports come at a time when tech stocks have faced pressure due to concerns about AI spending, Chinese competition, and possible economic impacts from President Trump’s tariff policies.
The stock market has not been kind to tech giants this year. Microsoft and Meta, the best performers in the group, are down over 10% in 2025. Apple, Amazon, and Nvidia have lost more than 20% of their value. Tesla has been hit even harder, with its stock dropping more than 40%.
Tesla Faces Multiple Challenges
Tesla’s earnings report arrives amid major headwinds for the electric vehicle maker. The company has shown signs of declining sales in many of its key markets. It has also dealt with political backlash related to CEO Elon Musk’s role in the Trump administration.
Tesla reported weaker-than-expected first-quarter deliveries earlier this month. This news has contributed to the stock’s sharp decline in 2025.
Despite these challenges, many analysts remain optimistic about Tesla’s long-term prospects. They point to the company’s progress in self-driving technology and artificial intelligence as reasons for hope.
“Tesla is in a unique position: its opportunity in physical AI is so compelling that investors are willing to look past what will likely be a difficult year,” wrote Gene Munster of Deepwater Asset Management. “In my view, 2025 doesn’t matter; the business is poised for meaningful improvement starting next year.”
Alphabet and the Impact of Tariffs
Alphabet’s earnings report will be closely watched for insights on how tariffs might affect the tech sector. The company has been investing heavily in artificial intelligence infrastructure, including a $75 billion announcement earlier this year.
Morgan Stanley analysts suggest that Alphabet, along with Meta and Amazon, may be better positioned than other internet companies to weather the new trade environment due to their scale. However, they also warned that “ripple effects” from tariff concerns, including potential weakness in digital ad demand, could affect the sector broadly.
Investors will look for comments from Alphabet’s leadership about how trade tensions might impact their business and cloud services. The company’s cloud revenue disappointed analysts in its previous quarterly report.
Broader Market Implications
Beyond Tesla and Alphabet, this week’s earnings calendar includes several other major companies. Boeing will report on Wednesday, with Intel scheduled for Thursday. Both companies face their own challenges related to trade tensions.
Boeing’s stock has recently fallen on reports that Chinese carriers will stop taking deliveries amid rising trade conflicts. Intel, now operating under a new CEO, is working to refocus its business amid industry partnership talks.
Telecommunications giants AT&T, Verizon, and T-Mobile are also set to report this week. Their results may offer insights into consumer spending patterns and service adoption rates.
Economic Indicators and Fed Speakers
The earnings reports come alongside key economic data releases. Friday’s scheduled publication of the final Michigan Consumer Sentiment Index for April will be closely watched. This index has declined for four consecutive months as worries about U.S. tariff policies have grown.
New home sales data, durable goods orders, and Purchasing Managers Index information are also scheduled for release this week. Economists will analyze these numbers for signs of how tariffs are impacting various sectors of the economy.
Several Federal Reserve officials are scheduled to speak this week, including Fed Governor Christopher Waller and Philadelphia Fed President Patrick Harker. Their comments will be scrutinized after Fed Chair Jerome Powell recently stated that tariffs would likely have an inflationary impact.
The Federal Reserve’s Beige Book, an overview of economic conditions, will be released on Wednesday ahead of the central bank’s next meeting on May 6-7. This report could provide further context for understanding the current economic environment.
Meta and Microsoft are set to report earnings next Wednesday, with Amazon and Apple following a day later. Nvidia’s report is expected in late May. Together, these companies’ results will paint a clearer picture of how the tech sector is navigating the current economic and policy landscape.
