Alphabet, Tesla, Boeing: Highly Anticipated Earnings Reports This Week

The stock market is once again under the influence of Trump’s trade policies, whose tariffs have created a real financial tsunami. Since the announcement of the 90-day pause on reciprocal tariffs on April 9, uncertainty has continued to grow, weakening investors’ expectations. This week, the anticipated financial results from Tesla and Alphabet could well decide the markets’ direction, with uncertainties looming over their balance sheets.

Tesla under Pressure: Tariffs as a Sword of Damocles

Tesla finds itself in a fragile position amid intensifying trade tensions. The tariff pause might seem like a short-term breath of fresh air, but the cumulative impact of customs tariffs on Chinese imports remains incalculable. After years of rapid ascent, the brand is now facing a drop in demand in several of its key markets.

Tesla is in a unique position: its opportunity in physical AI is so compelling that investors are willing to look past what will likely be a difficult year. In my view, 2025 doesn’t matter; the company is set to see significant improvement starting next year.

Gene Munster of Deepwater Asset Management

While Elon Musk’s company has always stood out for its innovation, the current economic challenges are weakening this trajectory. With a 40% drop in its shares since the beginning of the year, Tesla’s future, once seen as bright, seems increasingly uncertain. A wave of skepticism is blowing over the company, and hopes for a quick recovery seem more and more difficult to envision.

Alphabet: From Resilience to Necessary Adaptation

Alphabet, Google’s parent company, is in a stronger position but is not immune to the impact of tariff policies. Its diversification into digital services helps cushion the blows, but the shadow of trade restrictions also weighs on its forecasts.

“Alphabet could feel the indirect effects of trade tensions, notably a decline in advertising spending“, a Morgan Stanley analyst points out.

Certainly, Alphabet benefits from solid resilience, but its dependence on the Chinese market and advertising spending makes it vulnerable to any geopolitical instability.

With profit margins already under pressure, the company must navigate cautiously in a context where tariff policy uncertainty risks hampering its performance, like its competitors. Indeed, while the company appears capable of weathering a storm, the question remains: how long will this resilience hold against the increasingly protective policies of the Trump administration?

Trump’s Tariffs: Another Storm on Already Turbulent Markets

Recent stock market volatility is directly linked to the uncertainties caused by Trump’s tariff decisions. Last week, the S&P 500, Nasdaq, and Dow Jones all recorded declines of 1.5% to 2.6%.

“What is happening right now is this ongoing level of uncertainty in the markets“, observes Sylvia Jablonski, CEO of Defiance ETFs.

Investors find themselves hanging on the developments of American trade policies, and fears of tariff extensions fuel a negative spiral. Stuart Kaiser from Citi summarizes:

We need good news on the tariff front, especially with our key trading partners.

Uncertainty weighs heavily on the markets. If good news comes from this front, the markets could rebound; but without reassuring news, the economic climate could deteriorate, increasing the chances of a recession. Companies, particularly those in tech, which depend on global supply chains like Tesla and Alphabet, are exposed to significant instability.

Tariffs imposed by Trump continue to induce major market instability. Many analysts believe these policies could cause significant damage to large tech companies like Tesla, whose viability could be compromised in the short term. Tesla shares, in particular, suffer from a worrying decline, and the company’s dependence on Chinese components only worsens the situation. The outlook remains uncertain, and the coming month will be crucial in assessing the market’s direction.