Apple’s $900 Million Tariff Pain

Plus, Amazon's cloud growth slows.

May 02, 2025

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Today is Friday, May 2, 2025.

The Early Bird Index today is 70.23

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Apple’s $900 Million Tariff Pain

Apple $AAPL ( ▲ 0.39% ) tried to woo investors with its financial earnings release on Thursday, but investors were not pleased. The stock fell 3.78% in after-hours trading.

Financials: In the past quarter, Apple reported earnings of $1.65 per share and revenue of $95.4 billion, which were better than expected.

Powering the Story: iPhone revenue grew in the past quarter. Apple issued a $100 billion stock buyback on Thursday to raise the stock price and boosted its dividend by 4%. However, CEO Tim Cook said President Trump’s tariffs could add about $900 million in costs during the current quarter.

Early Bird’s Nest Egg Gains: Apple's supply chain is heavily reliant on China, where most iPhones and many other products are manufactured. Even with some manufacturing shifting to India and Vietnam, these countries are also subject to significant tariffs. Apple could raise prices, but this could reduce consumer demand for Apple products.

Final Thoughts: Apple’s stock is down over 12% this year.

Gold hitting record highs

The price of gold keeps heating up. If the record-breaking year of 2024 wasn't enough, gold hit a major historic 2025 milestone by crossing the $3,000/ounce threshold!

Here are 3 Key Reasons:

  1. Looming economic & political uncertainty

  2. Increasing central bank demand

  3. Rising National Debt - over $36 Trillion

So, could gold surge even higher?

According to a recent statement from Jeffrey Gundlach, famed American business man and investor… “Gold continues its bull market that we’ve been talking about for a couple of years, ever since it was down to $1,800.” He expects gold to reach $4,000/oz.

Is it time you learn more about precious metals?

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Notables

Notable Earnings Today: Exxon Mobil (NYSE: XOM), fuboTV (NYSE: FUBO), Chevron (NYSE: CVX), The Cigna Group (NYSE: CI), Wendy's (Nasdaq: WEN), Franklin Resources (NYSE: BEN), AES (NYSE: AES), Magna (NYSE: MGA), Cinemark (NYSE: CNK), Apollo (NYSE: APO), Atmus Filtration Technologies (NYSE: ATMU), BrightSpring Health Services (Nasdaq: BTSG), Brookfield (NYSE: BEP), Cboe Global Markets (BATS: CBOE), Criteo (Nasdaq: CRTO), DuPont (NYSE: DD), Fluor (NYSE: FLR), Fulgent Genetics (Nasdaq: FLGT), Interface (Nasdaq: TILE), Protolabs (NYSE: PRLB), T. Rowe Price (Nasdaq: TRWO), Terex (NYSE: TEX),  Westlake (NYSE: WLK), WisdomTree (NYSE: WT), Xenia Hotels (NYSE: XHR).

Notable IPOs Today: Cantor Equity Partners II, Inc. Class A Ordinary Share (Nasdaq: CEPT), Winchester Bancorp, Inc. Common Stock (Nasdaq: WSBK), Smart Digital Group Limited Ordinary Shares (Nasdaq: SDM).

Notable Equity Crowdfunding Campaigns Ending Today: Standing Wave Coffee Roaster (Honeycomb).

Notable Economic Events Today: Unemployment Rate (8:30 a.m. ET), Nonfarm Payrolls (8:30 a.m. ET), Average Hourly Earnings (8:30 a.m. ET), Labor Force Participation Rate (8:30 a.m. ET), Factory Orders (10:00 a.m. ET).

Amazon's Cloud Growth Slows

Despite posting good financial earnings results on Thursday, Amazon $AMZN ( ▲ 3.13% ) fell 3.21% in after-hours trading.

Financials: Amazon reported earnings of $1.59 per share and revenue of $155.7 billion in the past quarter. Both were better than expected.

Powering the Story: Revenue for AWS (Amazon Web Services), the company’s cloud business, grew 17%. The problem is that AWS revenue for the same period last year grew 18%. That means AWS's growth has slowed.

Final Thoughts: Similar to Apple, Amazon’s stock is down in 2025 due to macro uncertainty and tariffs.

Block’s “More Cautious Stance”

Financial technology company Block $XYZ ( ▲ 0.02% ) plunged 18.43% in after-hours trading on Thursday after posting disappointing financial earnings results.

Financials: Block reported earnings of 56 cents per share and revenue of $5.77 billion in the past quarter. Both were lower than expected.

Final Thoughts: To make matters worse, Block said it was taking “a more cautious stance” and lowered its 2025 financial outlook.

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The contents of Early Bird are intended for informational and entertainment purposes only. They do not constitute trade or investment recommendations and they are not financial or legal advice. Readers are encouraged to consult licensed professionals for personalized guidance regarding their financial or legal situations.