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Amazon (AMZN.US) is caught in a tariff dilemma: should it prioritize profits or market share? Evercore ISI warns of the risks putting pressure on the stock price.
As one of the Global technology giants with the highest dependence on imported Commodities, Amazon is forced to choose between 'absorbing tariff costs' or 'passing the pressure onto Consumers.'
Donating money resulted in a plummet of values! The USA Technology industry trying to curry favor with Trump ended up being a "Faustian trade."
① Just as USA Technology companies were once very cocky at the beginning of Trump's presidency, they now find themselves in big trouble; ② Due to tariff policies and market turmoil caused by Trump's overreach, the performance of USA Technology companies has been collectively downgraded this year, and Stocks have also been heavily sold off; ③ Musk, Huang Renxun, Zuckerberg, and Bezos have lost nearly 200 billion dollars in wealth, leading to their support for Trump being regarded as a deal with the devil.
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After "breaking up" with Amazon, UPS cut 20,000 jobs and suspended its full-year forecast amid economic uncertainty.
UPS currently has about 0.49 million employees and plans to cut 4% of its total workforce due to parting ways with its largest customer, Amazon. This layoff aims at network restructuring and efficiency improvement. Although UPS's first-quarter performance exceeded expectations, it has not updated its full-year outlook due to economic uncertainty, and a decline in transportation volume and revenue is expected in the second quarter.
Trump's tariff iron fist has impacted the advertising sector! Snap (SNAP.US) saw a 59% increase in subscription users but refused to provide revenue expectations.
Snap's revenue in the first quarter exceeded the average expectations of Analysts, but due to "unfavorable factors" in the macro economy impacting its advertising business, the company declined to release revenue forecast data for the period.
Amazon Could Actually Benefit From Trump's Tariffs, Analyst Says