The tech earnings reset is right now being shaped by the current tariff situation, and many large companies such as Meta, Microsoft, and Google are adjusting their forecasts accordingly. At the time of writing, financial analysts at Jefferies are suggesting that these market disruptions actually provide an opportunity for the tech giants to lower their 2025 projections. Meta stock forecast figures and also Microsoft earnings 2025 numbers are currently being revised downward while Google stock guidance is also changing amid the uncertainty.
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Tariff Shocks Let Big Tech Reset 2025 Forecasts and Stock Outlook
Price Targets Cut Amid Uncertainty
Jefferies analysts said this in their recent note:
“Lower estimates that are more achievable tend to improve investor sentiment and, ultimately, lead to better share performance.”
The ongoing tech earnings reset includes, among other changes, a rather substantial 17% cut to the Meta stock forecast, dropping from $725 down to about $600. Additionally, Microsoft earnings 2025 expectations were likewise lowered by approximately 5%, with a price target reduction from $500 to $475. The Google stock guidance also saw earnings per share estimates cut by around 2%.
Peak Uncertainty Expected
The second quarter represents the height of market confusion according to what Jefferies analysts have pointed out:
“[Q2] likely represents a peak period of uncertainty, followed by a potentially better 2H/Q4 after expectations are reset and there is more clarity around macro and tariff-related risks.”
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Market-Wide Tariff Impact
The tech earnings reset is happening as President Trump has recently announced some substantial tariffs, including a 34% tariff on China. And in response, Chinese officials have implemented retaliatory measures with matching 34% tariffs on all US imports starting April 10. Global markets have, as a result, suffered significant losses, with the S&P 500 dropping about 6%.
Former Treasury Secretary Larry Summers stated:
“Never before has an hour of Presidential rhetoric cost so many people so much. The best estimate of the loss from tariff policy is now closer to $30 trillion.”
Business Response Broadens
Beyond the tech earnings reset, various companies including Target and even Ferrari are now planning price increases due to the new tariffs. The Meta stock forecast adjustments also reflect some concerns about Chinese advertisers potentially pausing their US campaigns. Microsoft earnings 2025 and Google stock guidance will likely stabilize in the latter part of 2025 after this current reset period has passed.
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