Latest news with #APAC-based
Yahoo
02-06-2025
- Business
- Yahoo
Tariffs Test Big Tech: Apple, Amazon, and Meta Brace for Costly Disruption
Big Tech execs had front row seats at President Donald Trump's inauguration in January. About 100 days later, and this week's latest earnings calls show what impacts tariffs have had and how the companies are bracing for a financial storm. This week, numbers from the Commerce Department revealed the nation's economy shrank during the first quarter of 2025-the first decline since the opening three-month period of 2022. U.S. gross domestic product-the value of all goods and services produced across the country-fell at a seasonally adjusted 0.3% annual rate, as companies increased imports and prepared to navigate the Trump administration's tariffs. For Big Tech firms, that impact is manifesting in a range of ways. Apple is eyeing a $900 million cost hit by mid-2025, while Microsoft leans on AI to buffer economic pressure. As uncertainty clouds global trade, Google, Meta, and Amazon also face shifting costs and supply chain headaches. Here's what the Silicon Valley titans had to say during their earnings calls this week. Google flagged that changes to the de minimis exemption could pose a "slight headwind to our ads business in 2025, primarily from APAC-based retailers," svp and chief business officer Philipp Schindler said during the earnings call with investors. When asked by an investor whether any specific ad verticals or regions were showing signs of weakness quarter-to-date, Schindler said the company is "obviously not immune to the macro environment," but declined to speculate further. He did not directly address tariffs. Meta pointed to reduced ad spend from Asia-based ecommerce exporters ahead of the May 2 expiration of the de minimis exemption. Chief financial officer Susan Li said some of that spend has shifted to other markets, but overall levels remain below what the company saw prior to April. She added that there's still uncertainty about how the change will affect Q2 performance. Amazon hasn't seen a drop in consumer demand tied to tariffs-yet. CEO Andy Jassy said the company is observing "heightened buying" in some categories, likely due to consumers shopping ahead of potential price hikes. While average selling prices haven't meaningfully increased, Jassy attributed that to forward buying by Amazon and its sellers, as well as delayed pricing changes. He cautioned that this could shift depending on where tariffs land. "Amazon is not uniquely susceptible to tariffs," Jassy said. "As it relates to China, retailers who aren't buying directly from China are typically buying from companies who themselves are buying from China, marking these items up, rebranding, and selling to U.S. consumers. These retailers are buying the product at a higher price than Chinese sellers selling directly to U.S. consumers in our marketplace, so the total tariff will be higher for these retailers than for China direct sellers." The word 'tariff' was mentioned 18 times in the call. Amazon's Q2 outlook is "inherently unpredictable and may be materially affected" by fluctuations in foreign exchange rates, tariff and trade policies, inflation, interest rates, and broader global economic conditions, according to vp of investor relations Dave Fildes. Still, Jassy said he's optimistic the retail giant could come out of the current tariff environment stronger, as it did with past disruptions like the Covid-19 pandemic. Tariffs came up only once in Microsoft's prepared remarks during the earnings call. CFO Amy Hood noted that Windows OEM and devices revenue grew 3% year over year, exceeding expectations. She attributed part of the bump to elevated inventory levels, as tariff uncertainty led to stockpiling throughout the quarter. While Microsoft's direct exposure to tariffs is limited compared to companies that either sell physical goods or provide platforms for companies selling those goods, it still faces risks. Rising equipment costs and potential cuts to clients' software budgets could have an impact. CEO Satya Nadella pointed to the company's expanding AI infrastructure-particularly investments in Nvidia GPUs-as an area where tariff-driven costs could emerge. Still, he positioned software as a deflationary force. "If you buy into the argument that software is the most malleable resource we have to fight any type of inflationary pressure or growth pressure where you need to do more with less, I think we can be super helpful in that," Nadella said. Apple CEO Tim Cook said that if current tariff conditions persist, the company could face an additional $900 million in costs for the June 2025 quarter. In that quarter, Cook said the majority of iPhones sold in the U.S. will come from India, while iPads and Macs imported to the U.S. will be manufactured in Vietnam. Cook confirmed that China would remain the primary source for the "vast majority" of Apple products. Sign in to access your portfolio
Associated Press
04-05-2025
- Health
- Associated Press
Final Days to Submit Abstracts for the 2025 Lysosomal Disease Summit in Sydney, Australia
Researchers Invited to Contribute to APAC's Leading Lysosomal Disease Meeting 'This year's Summit will bring together pioneering minds to explore cutting-edge research and ignite collaborations that shape the future of lysosomal diseases.'— Professor Maria Fuller, BAppSc, MAppSc, PhD, FFSc(RCPA) SYDNEY, NSW, AUSTRALIA, May 4, 2025 / / -- The 3rd Annual Lysosomal Disease Summit, to be held 24–26 October 2025 at the Hyatt Regency Sydney, invites researchers, clinicians, and industry partners to participate in this premier scientific meeting focused on advancing lysosomal disease research, diagnostics, and care across the Asia-Pacific region. The Call for Abstracts remains open through 9 May 2025, offering a critical opportunity for professionals in the lysosomal disease field to contribute to the Summit's scientific programme. Accepted abstracts will be considered for oral or poster presentations, with select oral presenters receiving a discounted registration rate. A limited number of scholarships are also available to support participation. 'Innovation begins with connection,' said Professor Maria Fuller, BAppSc, MAppSc, PhD, FFSc(RCPA), a 2025 Lysosomal Disease Summit Course Director. 'This year's Summit will bring together pioneering minds to explore cutting-edge research and ignite collaborations that shape the future of lysosomal diseases. Every contribution helps drive discovery forward and creates opportunities to meaningfully improve patient care.' Programme Highlights • Groundbreaking research presentations from international and APAC-based experts • Strategic panel discussions on current challenges and treatment developments • Dedicated sessions to support early-career researchers • Networking and collaboration opportunities with global and regional stakeholders Attendees will engage with leading voices in lysosomal disease research and treatment, explore diagnostic innovations, and build new partnerships across industry, academia, and clinical care. For full details on abstract submissions, registration, sponsorship, and Summit updates, visit About the Lysosomal Disease Summit The Lysosomal Disease Summit, a collaborative effort with Fabry Australia and independently managed by Etherio, is a premier scientific event dedicated to advancing research, collaboration, and innovation in lysosomal disease treatment. Now in its third year, the Summit serves as a vital forum for experts across the APAC region to share knowledge and drive progress in the field. Sarah Jansen Etherio email us here Visit us on social media: LinkedIn Legal Disclaimer: EIN Presswire provides this news content 'as is' without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
Yahoo
29-04-2025
- Business
- Yahoo
Meta to report first quarter earnings as tariff, antitrust fears loom
Social media giant Meta (META) will report its first quarter results Wednesday as Wall Street looks for clarity on the impact of President Trump's reciprocal tariffs on US businesses. Meta's report comes after rival Google (GOOG, GOOGL) announced its own earnings last week, beating on both the top and bottom lines on the strength of its ad sales. During that company's investor call, Google CBO Philipp Schindler said it was too early to comment on the potential economic impact on the current quarter, but did mention that the Trump administration's changes to de minimis exemptions will cause "a slight headwind to [Google's] ads business in 2025." The de minimis exemption lets companies ship items under $800 to the US without having to pay a duty. That, Schindler explained, will have a particular impact on Google's APAC-based retail customers. For the quarter, Meta is expected to report earnings per share (EPS) of $5.25 on revenue of $41.3 billion, according to Bloomberg consensus estimates. The company saw EPS of $4.71 on revenue of $36.4 billion in Q1 2024. Advertising revenue is expected to top out at $40.5 billion, while Meta's Reality Labs segment is set to report an operating loss of $4.5 billion and revenue of $496 million. Meta's stock price is down more than 5% since the start of the year. 'We attribute weakness to [Meta's] greater exposure to advertising (no cloud business for [Meta]) and China-based advertisers (>10% exposure for [Meta]) who have reportedly pulled back on ad spend,' Jefferies analyst Brent Thill wrote in an investor note. In his own note, BofA Securities analyst Justin Post said he expects to see a modest beat on Q1 revenue but believes the company will offer a more conservative guide for the second quarter. Meta's earnings come as the company is battling the Federal Trade Commission (FTC) in court over claims the social media company holds an illegal monopoly over the 'personal social networking.' The FTC is looking to force Meta to sell off both Instagram and WhatsApp as a remedy. The commission claims Meta originally purchased the apps as part of a "buy-or-bury" campaign to fight off potential competitors. According to the Wall Street Journal, CEO Mark Zuckerberg offered to settle with the FTC for $450 million. The commission, however, asked for $30 billion. Zuckerberg eventually raised his offer to $1 billion, but the FTC would only go as low as $18 billion. Zuckerberg has met with President Trump several times over recent months as he seeks to develop a closer relationship with the president. For instance, the CEO attended Trump's inauguration in January, and Meta donated $1 million to Trump's inauguration fund. Also in January, the Wall Street Journal reported that Meta had reached a $25 million settlement with Trump related to the company's decision to ban him from its platforms following the Jan. 6 attack on the Capitol. Email Daniel Howley at dhowley@ Follow him on Twitter at @DanielHowley. Sign in to access your portfolio
Yahoo
28-04-2025
- Business
- Yahoo
Google Parent Alphabet Just Gave Investors 2 Strong Reasons to Stay Bullish
What was the most heralded story from Google parent Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) first-quarter update Thursday evening? The company's better-than-expected revenue growth. Alphabet reported Q1 revenue of $90.2 billion, higher than the consensus Wall Street estimate of $89.1 billion. However, I don't think this story was the most important one for investors. Sure, Alphabet's share price jumped on Friday following the positive results. But the company has just given investors two strong reasons to remain bullish that are more significant than a quarterly revenue beat, in my opinion. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Before the Q1 update, Alphabet stock was down roughly 16% year to date. Most of this decline can be attributed to worries about the negative impacts of the Trump administration's tariffs. It's probably fair to say that the White House's trade policy has been one of the four most disruptive factors for the stock market this century, alongside the dot-com bubble bursting, the 2007-2009 financial crisis, and the COVID-19 pandemic. Google Chief Business Officer Philipp Schindler acknowledged the potential adverse effect on his company's business, noting in the Q1 earnings call that Google is "not immune to the macro environment." If he had stopped there, some might think the stock's recent sell-off was fully warranted. However, Schindler kept talking. He mentioned President Donald Trump's decision to close the de minimis exemption of tariffs on Chinese imports valued at $800 or less. While this loophole closure is causing major worries for many U.S. businesses, Schindler said it would only "cause a slight headwind to our Ads business in 2025, primarily from APAC-based [Asia-Pacific] retailers." Granted, the company could still feel the impact of tariffs, measured in billions of dollars. After all, Google advertising is on track to generate revenue of more than $267 billion in 2025 based on the Q1 results. Still, a "slight headwind" to Google's advertising revenue should make investors breathe a big sigh of relief. After OpenAI launched ChatGPT in late 2022, some proclaimed that generative artificial intelligence (AI) presented a huge threat to Google Search. A few even argued that it could be an existential threat. And there were some legitimate reasons for concern at first. I think it's a much different story now, though. Alphabet and Google CEO Sundar Pichai confirmed this with his prepared remarks in the Q1 earnings call. Pichai said that AI Overviews, Google's integration of generative AI into its search engine, "now has more than 1.5 billion users every month." He added, "Nearly a year after we launched AI Overviews in the U.S., we continue to see that usage growth is increasing as people learn that Search is more useful for more of their queries." Google hasn't stopped with AI Overviews, though. It released AI Mode last month. This new technology offers more advanced reasoning and multimodal capabilities. Pichai noted that users are providing "really positive feedback" about AI Mode's "design, fast response time, and ability to understand complex, nuanced questions." Management's comments about how AI is helping Google Search appear to be backed up by the numbers. Google advertising revenue jumped roughly 8.5% year over year in Q1. Operating income from Google Services, which includes advertising, subscriptions, platforms, and devices, soared 17.1%. But what about the federal court rulings that Google is illegally running a monopoly? Alphabet executives didn't talk about them. That's understandable, though. Management teams rarely make public comments on legal matters. I think the antitrust decisions against Google present legitimate reasons for investors to be concerned. The company's business could be negatively impacted, depending on the final outcome of the lawsuits. Importantly, though, we don't know yet what the final outcome will be. Google could successfully appeal the rulings against it. Even if it loses, the remedies the company could be required to make might be less problematic than anticipated. For now, investors have strong reasons to be bullish about Alphabet stock. Before you buy stock in Alphabet, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Alphabet wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $594,046!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $680,390!* Now, it's worth noting Stock Advisor's total average return is 872% — a market-crushing outperformance compared to 160% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 21, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Keith Speights has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet. The Motley Fool has a disclosure policy. Google Parent Alphabet Just Gave Investors 2 Strong Reasons to Stay Bullish was originally published by The Motley Fool
Globe and Mail
28-04-2025
- Business
- Globe and Mail
Meta Q1 Earnings Preview: Is META Stock a Buy or Sell Ahead of the Report?
This week, four constituents of the 'Magnificent 7' will report their earnings for the March quarter. Meta Platforms (META) and Microsoft (MSFT) will release their reports on April 30, and Apple (AAPL) and Amazon (AMZN) will release theirs on May 1. The Q1 earnings season for the group began on a good note. While Tesla (TSLA) missed on both the top line and the bottom line, the stock soared after its Q1 earnings, after CEO Elon Musk announced that he would step back from his Department of Government Efficiency (DOGE) responsibilities to focus on Tesla. Alphabet (GOOG), on the other hand, reported impressive numbers for Q1 and the stock closed marginally higher after the earnings. While cloud and YouTube revenues came in a tad short of estimates, the company beat on the headline revenue and profit numbers, led by strong growth in the core advertisement business. In this article, we'll look at Meta's Q1 earnings estimates and analyze whether the stock is a buy or a sell heading into the report. Meta Q1 Earnings Preview Analysts expect Meta's Q1 revenues to rise 13.4% year-over-year to $41.35 billion. During their Q4 2024 earnings call, Meta forecast Q1 revenues to be between $39.5 billion and $41.8 billion. Analysts are modelling Meta's Q1 earnings per share to rise 10.6% YOY to $5.21. However, for the full year, analysts expect Meta's EPS to be similar to last year. Notably, U.S. tech giants could face higher depreciation expenses for the next few years on account of their massive capex toward artificial intelligence (AI), which would dent their profitability. Meta's Business from Chinese Advertisers Could Be Negatively Impacted Digital ads account for the bulk of the revenues for Alphabet and Meta. Alphabet had a warning for the companies in the digital advertisement business that should ring an alarm for Meta investors. Google's Chief Business Officer Philipp Schindler acknowledged during the Q1 earnings call that the company is 'not immune to the macro environment.' He added, 'We wouldn't want to speculate about potential impacts beyond noting that the changes to the de minimis exemption will obviously cause a slight headwind to our ads business in 2025, primarily from APAC-based retailers.' While Meta is banned in China, Chinese companies use its platforms to reach potential buyers, particularly in the Western world. Chinese advertisers reaching out to U.S. consumers have been a key driver of Meta's growth over the last couple of years – something the company has discussed in its last several earnings calls. While Meta does not provide the breakdown of spending by Chinese advertisers, in 2024, it earned $18.35 billion in revenue from China. To put that in context, it earned $13.69 billion and $7.40 billion in 2023 and 2022 from China, respectively. This revenue is at risk from the 'reciprocal' tariffs that President Donald Trump has imposed on imports from China. Meta Stock Forecast Sell-side analysts have also taken note of the deteriorating macro environment, and multiple brokerages have slashed Meta's target price amid the U.S.-China tariff war. Among major brokerages, Stifel lowered Meta's target price from $740 to $628 while Benchmark cut its from $820 to $640, even though both maintained their 'Buy' rating on the stock. Cantor Fitzgerald also maintained its 'Overweight' rating while lowering Meta's target price from $790 to $624. Despite the flurry of target price cuts, Meta's mean target price of $690.87 is 26.1% higher than last week's closing prices, and it has a consensus rating of 'Strong Buy' from the 53 analysts actively covering the stock. Is Meta Stock a Buy or a Sell Ahead of the Q1 Earnings? Along with the headwinds related to its core business, especially the revenue from Chinese advertisers, Meta is also facing regulatory issues. The U.S. Federal Trade Commission is suing the social media giant for a divestment of WhatsApp and Instagram. Incidentally, Alphabet is also facing regulatory heat, and the U.S. Justice Department plans to break up Alphabet and force the company to divest the Chrome browser and Android operating system. It also wants the company to its end exclusive agreements with phone makers like Samsung and Apple. Adding to Meta's woes is the testimony from former Facebook executive Sarah Wynn-Williams, who alleged that Meta executives "lied about what they were doing with the Chinese Communist Party' to grow their business in that country. Meta stock currently trades at a forward price-earnings (P/E) multiple of 22.72x, which looks quite balanced. While the multiples might not be exorbitant, they aren't mouthwateringly cheap either to build a strong 'buy' case for the stock. Overall, given the uncertainty over tariffs and the feared slowdown in the U.S. economy, I would stay on the sidelines on Meta for the time being and not add more shares ahead of the Q1 confessional.
