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If you’re curious about how tech companies like Meta, Reddit, and Apple managed to post strong earnings this week in spite of President Donald Trump’s tariffs, the answer might lie in those very tariffs. While the tariffs didn’t directly benefit these companies, they did set lower expectations, making it easier for them to exceed predictions.
Yahoo Finance pointed out that second-quarter earnings were generally positive, despite concerns about tariffs, high stock valuations, and economic uncertainty in the US. Meta, for example, surpassed expectations with Q2 revenues of $47.5 billion compared to the expected $44.8 billion. Reddit also saw impressive revenues, bringing in $500 million, well above the $425 million forecasted by Wall Street. Apple’s revenue, up 10 percent year over year at $94 billion, exceeded the expected $89.5 billion.
These tech giants managed to achieve strong sales amidst challenging conditions and reduced expectations. However, the impact of Trump’s tariffs and a shaky economy is still felt. Apple, for instance, estimated that tariffs would cost the company $1.1 billion in just one quarter. Furthermore, a negative jobs report in July is adding to economic concerns, even among Trump supporters.
