Tech Giants Adjust Profit Forecasts Due to Tariff Impact: Companies such as Meta, Microsoft, Google, and Amazon are revising their profit guidance downward. 11.04.2025 Latest updates

 ​ April 11, 2025 | By [Selvaranee M ]

The world’s largest tech companies are hitting the reset button on their profit expectations. As U.S.-China trade tensions escalate, industry giants like Meta, Microsoft, Alphabet (Google) and Amazon are cutting their financial forecasts for 2025—citing both external economic pressure and internal investment priorities.

Why the downgrade?

The catalyst: A new wave of tariffs, triggered by diplomatic tensions between the U.S. and China. The measures are adding to operating costs, squeezing margins and undermining investor confidence. For companies already pouring billions into artificial intelligence (AI) development, the timing couldn’t be worse.

Here's how the biggest players are reacting:

Meta Platforms (META), EPS down 13%, stock target cut to $600 ,Meta's core advertising business is under pressure, with small-to-mid-sized advertisers pulling back on budgets. Economic uncertainty fueled by tariffs has made digital advertising a risky bet for many businesses.

Microsoft (MSFT)

EPS down 5%, $80B AI investment plan underway, with Microsoft embracing AI but investors worried about short-term costs. The company's strategic focus on dominating cloud-based AI services could pay off, but it's squeezing 2025 margins in the meantime.

Alphabet (GOOGL)

EPS down 2%, $75B capex plan, with Google's parent company surprising markets with aggressive spending announcements, raising eyebrows about how much capital it can deploy without compromising profitability.

Amazon (AMZN)

Q1 revenue forecast: $151B–$155.5B, EPS cut 1%, Amazon's forward guidance missed Wall Street expectations. Amazon is heading into a turbulent quarter as tariffs impact shipping and logistics, and consumer habits change.

Market Snapshot (as of April 11, 2025)

Company	Stock Price	% Daily Change
Meta	$546.29	-6.73%
Microsoft	$381.35	-2.37%
Alphabet	$152.82	-3.69%
Amazon	$181.22	-5.19%

The Bigger Picture

While these revisions have caused short-term market jitters, analysts believe this quarter could represent a bottom for investor expectations.“These tariff-related headwinds are giving tech firms cover to reset without backlash,” says a Jefferies research note. “We expect cautious optimism once macro conditions stabilize.”For now, Wall Street is watching to see whether tech's long-term AI bets will outweigh the short-term tariff drag.