Apple, Amazon Warn of Tariff Risks Amid Earnings Reports

Apple and Amazon are both warning investors about the negative impact of tariffs on their financial outlooks, with Apple estimating a nearly $1 billion hit in the coming quarter and Amazon citing 'unpredictable' future results due to tariff and trade policy uncertainty. Apple’s earnings report disappointed analysts who are also concerned about the company’s artificial intelligence strategy, resulting in stock downgrades and a sharp drop in share price. Amazon’s first quarter sales rose, driven by strong cloud and advertising performance, but the company noted that some consumer purchases may have been pulled forward as buyers sought to avoid higher prices from impending tariffs. Both companies emphasized the difficulty in forecasting business conditions due to the evolving trade environment, with Amazon’s CEO highlighting the lack of clarity around where tariffs will settle. Amazon is also adapting its operations by optimizing its fulfillment and procurement networks to mitigate cost pressures and improve delivery speeds amid uncertainty. These warnings from Apple, Amazon, and other major corporations underscore broader concerns about trade policy volatility and its potential to disrupt financial planning and consumer behavior.