Apple (AAPL) shares fell nearly 4% in pre-market trading on Friday after the company warned it expects a $900m (£676m) cost headwind from tariffs in the current quarter, even as it reported results above Wall Street expectations.
The $3.2tn tech company posted revenue of $95.4bn for the three months to March, up more than 4% from a year earlier. Earnings per share (EPS) rose 7% to $1.65, beating analyst forecasts of $94.5bn in revenue and $1.62 in EPS. It was Apple’s fifth consecutive quarter of topping Wall Street expectations.
On an investor call, chief executive Tim Cook said the company anticipates tariffs will add $900m in costs for the June quarter. However, he added that it is “very difficult” to predict beyond June “because I’m not sure what will happen with tariffs.”
“We will manage the company the way we always have with thoughtful and deliberate decisions, with a focus on investing for the long term and with dedication to innovation and the possibilities it creates,” Cook said on the call. “As we look ahead, we remain confident.”
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Apple said it is now sourcing most of its iPhones bound for the US from India, as part of a continuing shift away from reliance on Chinese manufacturing amid the tariff blitz currently at 145%.
iPhone revenue came in at $46.8bn, ahead of consensus expectations of $45.6bn and up from $45.9bn in the same quarter last year.
Ben Barringer, global technology analyst at Quilter Cheviot, said: “With Apple right at the epicentre of the tariff drama, today’s results will leave it breathing a sigh of relief given things could be about to get a lot more challenging. Revenues were up 5%, with sales of the iPhone up 2%, meanwhile Apple Intelligence continues to be delayed as it looks to get it right.
"These are okay numbers, but perhaps most crucially sales in China are beginning to improve and the company is not seeing any boycotting of Apple products yet in response to the tariffs imposed."
The board authorised up to $100bn in share repurchases for the current quarter, down from $110bn last year. Apple also raised its dividend by 4% to 26 cents per share.
“We continue to plan for annual dividend increases,” Cook said.
NasdaqGS - Nasdaq Real Time Price • USD As of 3:56:58 PM EDT. Market Open.
Amazon (AMZN) shares fell more than 3% in pre-market trading after the e-commerce giant issued weaker-than-expected guidance for the second quarter and warned of the impact of US president Donald Trump’s trade war.
The Seattle-based group said it expects operating income of between $13bn and $17.5bn for the current quarter, down from $14.7bn a year earlier and below Wall Street’s forecast of $17.7bn.
The guidance comes as Amazon’s stock has fallen 17% so far this year, amid growing concerns that Trump’s sweeping tariffs on Chinese imports could dampen consumer demand. A significant proportion of goods sold on Amazon are shipped from China, which now faces tariffs of up to 145% under the latest White House policy.
Chief executive Andy Jassy told investors that Amazon had moved quickly to mitigate the impact, engaging in forward-buying ahead of this month’s tariff hike. “We haven’t seen any attenuation of demand yet,” he said, noting that average selling prices had not “risen appreciably” so far.
Still, he cautioned: “There’s going to be plenty of sellers that [will] decide to pass on those higher costs to consumers.”
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UBS (UBS) analysts estimated that at least 50% of items sold on Amazon are affected by the tariffs, with many likely to become more expensive as sellers respond.
Goldman Sachs (GS) has warned the levies could reduce Amazon’s operating profit by $5bn to $10bn this year — a potential 6% to 12% hit to Wall Street’s forecast of $79.2bn in full-year operating income.
Amazon also projected net sales of $159bn to $164bn in the current quarter. The lower end of that range missed analysts’ expectations of $161.4bn.
Mamta Valechha, consumer discretionary analyst at Quilter Cheviot, said: “Being a proxy for the health of the US consumer, the forecast for the second quarter was an even bigger focus last night. The company guided revenue growth between 7% and 11%, basically bracketed expectations, with encouraging noises that Amazon is seeing no changes to demand as a result of tariffs.
"Product pricing has also remained mostly stable and advertising dollars are keeping pace so far. But let’s not forget just how defensive Amazon’s product mix skews, with everyday essentials growing twice as fast as the rest of its items, and is also responsible for one in every three products sold in the US."
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Shares in Reddit (RDDT) were 6.5% higher ahead of the US opening bell after the social media group reported stronger-than-expected first-quarter results and issued upbeat guidance for the current quarter.
Revenue climbed 61% year-on-year to $391m, up from $243m in the same period last year. The company reported net income of $26.2m, or 13 cents per share, a sharp turnaround from a net loss of $575.1m, or $8.19 per share, in the prior-year quarter, when it incurred heavy costs related to its IPO.
Reddit forecast second-quarter sales in the range of $410m to $430m, ahead of analysts’ expectations of $396m, according to Refinitiv data.
The stock initially soared by as much as 19% in after-hours trading, but receded to around 5% when executives discussed the shaky economy and Google (GOOG) search-related challenges.
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About the ongoing trade dispute between the US and China, Reddit said in a letter to investors that it is “well-positioned to meet this moment.”
“Ever-shifting macro environments like these create both challenges and opportunities,” Reddit CEO Steve Huffman wrote. “We’ve grown through challenging times before — people need connection and information just as much in uncertain times.“
Huffman added that the company expects some disruption for daily active users from Google search.
"We do expect some bumps along the way from Google, because we've already seen a few this year," Huffman said, adding that the search ecosystem was undergoing significant changes, which could prompt frequent near-term disruptions.
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Shares in Airbnb (ABNB) fell 5% in pre-market trading after the company issued a weaker-than-expected revenue outlook for the second quarter, despite reporting first-quarter results largely in line with analyst estimates.
Revenue rose 6% year-on-year to $2.14bn, up from about $2.1bn a year earlier. Net income declined to $154m, or 24 cents per share, from $264m, or 41 cents per share, in the same quarter of 2024.
For the current quarter, the San Francisco-based travel platform forecast revenue between $2.99bn and $3.05bn — with the midpoint of $3.02bn just shy of analysts’ expectations of $3.04bn. The company noted the forecast includes a two-percentage-point benefit from Easter’s earlier timing this year.
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Gross booking value — which includes host earnings, service fees, cleaning charges, and taxes — rose 7% to $24.5bn, in line with expectations. Nights and experiences booked grew 8% to 143.1 million, just below the 143.4 million forecast by analysts.
Despite the cautious guidance, chief executive Brian Chesky said "no matter what’s happening in the world,” people will continue to choose to use Airbnb, because the model is “inherently adaptable.”
“It's something we've proven time and time again,” Chesky explained. “We started Airbnb during the great recession of 2008. People turned to us for a more affordable way to travel, and they started hosting Airbnb to earn extra income. Then in 2020 when the pandemic hit, we provided a way for people to choose to travel close to home.”
NasdaqGS - Nasdaq Real Time Price • USD As of 3:56:57 PM EDT. Market Open.
Standard Chartered (STAN.L) increased profits and beat market expectations in the first quarter, although the share price was muted as the bank warned on the coming impact of Trump’s trade war.
Standard Chartered reported stronger-than-expected profits for the first quarter of 2025, but its shares remained flat in London as the bank warned of mounting risks from escalating global trade tensions under Trump.
The Asia-focused lender posted pre-tax profits of $2.1bn for the three months to March, up 10% from $1.91bn a year earlier and ahead of the $1.905bn average estimate compiled by the bank. Return on tangible equity — a key measure of profitability — rose 1.3 percentage points to 14.8%.
Despite the beat, investor reaction was muted as the bank flagged growing uncertainty tied to international trade.
“The subsequent imposition of trade tariffs has increased global economic and geopolitical complexity, and we remain watchful of the external environment,” said chief executive Bill Winters in the earnings release.
Credit impairment rose to $219m in the quarter, a 24% increase from a year ago. The bank said a $23m rise in credit charges was linked to “an increased probability weighting for the Global Trade and Geopolitical Trade Tensions scenario, given the heightened uncertainty around trade tariffs.”
StanChart increased its risk-management probability of an intensified global trade war from 10% to 15%.
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