Mark Zuckerberg, CEO of Meta Platforms Inc.; from left, Lauren Sanchez; Jeff Bezos, founder of Amazon.com Inc.; Sundar Pichai, CEO of Alphabet Inc.; and Elon Musk, CEO of Tesla Inc., during the 60th presidential inauguration in the rotunda of the U.S. Capitol in Washington, D.C., on Jan. 20, 2025.
Julia Demaree Nikhinson | Bloomberg | Getty Images
Amazon’s earnings report, scheduled for Thursday, already had investors on edge due to the president’s sweeping tariffs and the potential impact they’ll have across the tech giant’s numerous businesses. With its stock price down 17% this year, Amazon is expected to report its slowest rate of revenue growth for any period since 2022, and that doesn’t reflect the levies announced in early April.
The tension got amped up early this week.
The White House on Tuesday criticized Amazon for reportedly planning to display on its site how much the new tariffs on top U.S. trading partners are driving up prices for consumers. After the story was published by Punchbowl News, Trump called Bezos to complain.
Amazon swiftly responded and said no such change was coming.
“This was never approved and is not going to happen,” Amazon wrote in a blog post that totaled 31 words.
President Trump frequently hurled insults at Bezos during his firm term in the White House, largely because of the Amazon founder’s ownership of the Washington Post. Bezos has recently gone out of his way to try and mend the relationship, traveling to Washington, D.C., for the inauguration in January.
The president said he was pleased with their latest phone call.
“Jeff Bezos was very nice,” Trump told reporters later on Tuesday. “He was terrific. He solved the problem very quickly and he did the right thing. He’s a good guy.”
Amazon clarified that it was only considering displaying the import fees on products sold on its discount storefront, Amazon Haul, which competes with ultra-cheap Chinese retailer Temu. Products on Haul cost $20 or less and many of them are sold direct from China using the de minimis trade exemption. That loophole is set to go away next month after Trump signed an executive order, making it more expensive to ship those products to the U.S.
The clash with Trump highlights the pressure Amazon is under to blunt the impact of Trump’s aggressive tariffs on Chinese imports, which total 145%. The company faces significant exposure to the tariffs, primarily through its retail unit. Amazon sources some products from China, while many sellers on its third-party marketplace rely on the world’s second-largest economy to make or assemble their products.
The topic of tariffs will hover over Amazon’s first-quarter earnings report. Investors will want to know how higher import costs could impact its margins, and whether uncertainty around the tariffs has caused shoppers to be more cautious with their spending.
For the quarter, Amazon is expected to report earnings per share of $1.37 and revenue of $155.04 billion, according to LSEG, which would represent annual growth of just over 8% and would be the slowest rate of expansion since the second quarter of 2022.
‘Difficult choices’
Amazon CEO Andy Jassy told CNBC earlier this month that the company hasn’t seen a drop-off in consumer demand. Amazon is “going to try and do everything we can” to keep prices low for shoppers, including renegotiating terms with some of its suppliers, Jassy said. But he acknowledged some third-party sellers will “need to pass that cost” of tariffs on to consumers.
Analysts at UBS said in a note to clients on Tuesday that at least 50% of items sold on Amazon are subject to Trump’s tariffs and could become more expensive as a result.
“Consumers therefore might have to make more difficult choices on where to allocate their dollars,” wrote the analysts, who have a buy rating on Amazon shares.
Amazon has reportedly pressured some of its suppliers to cut prices to shrink the impact of Trump’s tariffs, according to the Financial Times.
Some sellers have already raised prices and cut back on advertising spend as they contend with higher import costs. Others are looking to secure new suppliers in countries like Vietnam, Mexico and India, where tariffs are increasing under Trump, but are mild compared with the levies imposed on goods from China.
Temu and rival discount app Shein implemented price hikes on many items last week. Temu has since added “import charges” ranging between 130% and 150% on some products.
Wall Street will likely be focused on Amazon’s commentary surrounding business conditions going forward. The third quarter will include the results of Amazon’s Prime Day shopping event, typically held in July across two days. Amazon sellers previously told CNBC they may run fewer deals for this year’s Prime Day to conserve inventory or because they can’t afford to mark down products any further.
Bank of America analysts said in a note to clients this week that it sees the potential for Amazon to give a “wider guidance range” in its earnings report on Thursday, “though the impact may be bigger in the third quarter.”
Analysts at Oppenheimer said investors are “highly uncertain” as to the impact of tariffs on Amazon’s e-commerce business. The firm has an outperform rating on Amazon’s stock.
“We are assuming Q3 is the quarter most impacted as sellers should still have pre-tariff inventory through May and therefore don’t need to raise prices yet,” the analysts wrote.
Amazon didn’t provide a comment beyond its short statement on Tuesday.
Facebook and Instagram icons are seen displayed on an iPhone.
Jakub Porzycki | Nurphoto | Getty Images
Meta on Wednesday introduced new safety features for teen users, including enhanced direct messaging protections to prevent “exploitative content.”
Teens will now see more information about who they’re chatting with, like when the Instagram account was created and other safety tips, to spot potential scammers. Teens will also be able to block and report accounts in a single action.
“In June alone, they blocked accounts 1 million times and reported another 1 million after seeing a Safety Notice,” the company said in a release.
This policy is part of a broader push by Meta to protect teens and children on its platforms, following mounting scrutiny from policymakers who accused the company of failing to shield young users from sexual exploitation.
Meta said it removed nearly 135,000 Instagram accounts earlier this year that were sexualizing children on the platform. The removed accounts were found to be leaving sexualized comments or requesting sexual images from adult-managed accounts featuring children.
The takedown also included 500,000 Instagram and Facebook accounts that were linked to the original profiles.
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Meta is now automatically placing teen and child-representing accounts into the strictest message and comment settings, which filter out offensive messages and limit contact from unknown accounts.
Users have to be at least 13 to use Instagram, but adults can run accounts representing children who are younger as long as the account bio is clear that the adult manages the account.
The platform was recently accused by several state attorneys general of implementing addictive features across its family of apps that have detrimental effects on children’s mental health.
Meta announced last week it removed about 10 million profiles for impersonating large content producers through the first half of 2025 as part of an effort by the company to combat “spammy content.”
Congress has renewed efforts to regulate social media platforms to focus on child safety. The Kids Online Safety Act was reintroduced to Congress in May after stalling in 2024.
The measure would require social media platforms to have a “duty of care” to prevent their products from harming children.
Snapchat was sued by New Mexico in September, alleging the app was creating an environment where “predators can easily target children through sextortion schemes.”
A series of iPhone 16s on display inside the Apple store at Tun Razak Exchange in Kuala Lumpur, Malaysia, on Sept. 20, 2024.
Annice Lyn | Getty Images News | Getty Images
Britain’s competition regulators on Wednesday took aim at the mobile ecosystems of Apple and Google, pushing the two companies to make changes to areas like their app stores.
On Wednesday, the Competition and Markets Authority proposed designating the U.S. tech giants as having a “strategic market status” or SMS, after opening an investigation into the matter in January.
This designation is given to a large company that has “substantial and entrenched market power” and a “position of strategic significance” with respect to a digital activity in the U.K.
The CMA can force firms that are branded as having SMS to change or stop specific behaviors or practices in order to address competition concerns.
Apple and Google both took issue with the CMA’s proposals, effectively saying they would be bad for user security and consumers overall.
What has the CMA taken issue with?
Britain’s regulator focused on investigating Apple and Google’s mobile operating systems, app store and browser. One aspect of the investigation looked at whether there are barriers that may prevent other competitors from offering rival products and services on the U.S. tech giants’ mobile platforms.
Another part of the probe examined whether Apple and Google are using their position in operating systems, app distribution or browsers to favor its own apps and services.
And the final aspect of the investigation studied whether Apple and Google require developers to sign up to “unfair terms and conditions” in order to distribute their apps via the respective app stores.
The CMA on Wednesday said consumers and businesses have raised concerns about different issues across the two companies’ mobile ecosystems. But some of these include “inconsistent and unpredictable app review processes” and “inconsistent app store search rankings” that may favor the tech giants’ own apps.
The British regulator also took aim at the up to 30% commission charged by the firms on some in-app purchases and restrictions on developers telling customers about cheaper ways to pay or to subscribe outside of the app.
As part of Google and Apple’s review process to allow apps on to their app stores, developers raised concerns that the tech companies could have access to commercially sensitive data of their competitors, the CMA said.
Google’s Android operating system commands just over 61% market share in the U.K., while Apple’s iOS has just over a 38%, according to Kantar data. Google runs the Google Play store and Chrome browser, and Apple has its App Store and Safari browser.
What changes does the CMA want?
The CMA has laid out immediate changes that it wants to see, alongside some longer-term steps. The regulator said that it wants Apple to review apps for distribution in a “fair, objective and transparent manner.” This could include remedies such as Apple explaining delays or rejections and creating an avenue for businesses to raise concerns about the process.
Apple could also be made to publish a methodology for how it ranks apps in the App Store. The CMA has laid out similar remedies for Google.
The regulator is looking at how Apple and Google can make it easy for users to be steered by developers outside of an app to pay for services and products, thus avoiding their respective in-app purchase fee.
The CMA is also looking into ways to make it easier for users to transfer data between Apple’s iOS and Google’s Android to make switching easier.
For next year, the CMA said it is still looking at whether to require Apple to allow alternative app stores in iOS and the company’s iPad software. The regulator also said it is exploring whether to force Apple to allow users to download apps directly from a developer’s own website, a practice known as “sideloading.”
Apple and Google react
Apple said in a statement that the proposals from the U.K. “would undermine the privacy and security protections that our users have come to expect, hamper our ability to innovate, and force us to give away our technology for free to foreign competitors,”
“We will continue to engage with the regulator to make sure they fully understand these risks.”
Google’s Senior Director of Competition Oliver Bethell noted that both the Google Chrome browser and Android’s operating system are built on open-source code.
“These offerings enable great choice, security and innovation for users. That’s why today’s announcement is both disappointing and unwarranted,” Bethell said.
The Google executive highlighted ways in which Android has helped British developers and the economy.
“It is therefore crucial that any new regulation is evidence-based, proportionate and does not become a roadblock to growth in the U.K We remain committed to constructive engagement with the CMA for the duration of this process,” Bethell said.
U.S. tech giants face European scrutiny
Apple and Google’s regulatory problems on the continent of Europe continue to deepen.
Apple has been forced to make a number of changes to the way it operates in the EU this year. These include allowing developers to tell their users about cheaper alternatives and bypass Apple’s in-app payment system.
Apple has long argued that forced regulator-led changes to its operations could lead to privacy and security issues for users and confusing business terms for developers
In March, Google parent Alphabet meanwhile was accused by the EU of failing to comply with the DMA. The European Commission, the EU’s executive arm, said Google is treating its own search services more favorably than those of rivals. The Commission added that Google’s app store is preventing developers from steering consumer to other channels for better offers.
The search giant is also looking to fight a 4.1 billion euro fine that has stemmed from an antitrust case dating back to 2018.
The Texas Instruments headquarters in Dallas, Texas, on Jan. 21, 2024.
N. Johnson | Bloomberg | Getty Images
Texas Instrumentsreported second-quarter results on Tuesday that beat analysts’ expectations for revenue and earnings. But the stock fell in extended trading due to a third-quarter forecast that missed estimates.
Here’s how the chipmaker did versus LSEG consensus estimates:
Earnings per share: $1.41 vs. $1.35 expected
Revenue: $4.45 billion vs. $4.36 billion expected
Texas Instruments said it expects current-quarter earnings between $1.36 and $1.60 per share, while analysts were looking for $1.50 per share. The company forecast revenue of $4.45 billion to $4.8 billion, for a midpoint of $4.625 billion. Analysts were expecting revenue of $4.59 billion.
Revenue increased 16% in the second quarter from $3.82 billion in the same period a year earlier. Sales in the company’s analog chip business, its largest, rose 18% to $3.5 billion, surpassing the StreetAccount estimate of $3.39 billion for the segment.
Net income rose 15% to $1.3 billion, or $1.41 per share, from $1.13 billion, or $1.22 per share, a year ago.
Texas Instruments is a key supplier of legacy semiconductors for automotive and industrial uses.
As of Tuesday’s close, Texas Instruments shares were up 15% for the year on broader market optimism for chips. In June, the company said it would spend $60 billion to expand chipmaking factories in Texas and Utah, a move that was praised by the Trump administration in its push to bring more technology manufacturing to the U.S.