Closing Bell
Closing Bell 05/01/25
May 1, 2025
Kate Rooney, a CNBC correspondent focused on technology, joins Adam Parker, a market strategist from Trivariate Research, to dissect the latest market trends. They dive into the struggles of tech giants like Amazon and Apple amid economic shifts and reliance on the Chinese market. Insights reveal how recent earnings from Microsoft and Meta influence investor sentiment. The duo also navigates the uncertainties surrounding Federal Reserve policies and suggests strategic investments for stability. Get ready for a riveting discussion on the ever-evolving market landscape!
42:50
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Podcast summary created with Snipd AI
Quick takeaways
- Amazon's profitability concerns increase due to potential tariffs affecting third-party sellers and advertising growth amidst expectations for AWS performance.
- Apple's revenue growth may be jeopardized by tariff impacts on pricing strategies and customer demand, particularly in the crucial Chinese market.
Deep dives
Impact of Tariffs on Amazon's Guidance
Amazon investors are particularly concerned about how tariffs will affect the company's guidance and overall profitability. With about half of Amazon's third-party sellers based in China, the possibility of increasing costs due to tariffs raises questions about future profit margins. Additionally, commentary regarding advertising growth and potential pricing adjustments related to tariffs is critical for understanding Amazon's outlook. The expectation for impressive growth in Amazon Web Services (AWS) remains high, especially after Microsoft reported strong numbers, putting pressure on Amazon to perform similarly.
