Google's Stock Climbs Amid Tariff Tensions as Earnings Loom

As of last week, Google's Class C shares (GOOG) increased by 1.47%, marking a four-day upward trend with a total increase of 9.34% over the past four trading sessions. The stock has risen by 6.84% over the past week, yet year-to-date it has fallen 13.87%. The company's latest market capitalization stands at approximately $1.988 trillion.

In the backdrop of ongoing tariff uncertainties, Google is set to report its earnings later this week alongside other tech giants as part of the earnings season. Analysts and investors will keenly watch for any guidance provided by company executives on how tariffs may impact future results. The focus will be on discerning which tariff-related risks have been priced in by the market and identifying potential new impacts that have not yet been reflected in stock valuations.

Google's parent company, Alphabet, is scheduled to release its earnings on Thursday after the market closes. Analysts have indicated that Alphabet might be better positioned than many of its internet peers to navigate the new trade landscape, thanks to its considerable scale. Nonetheless, concerns remain about the potential ripple effects of tariffs, particularly on digital advertising demand, which could have broader industry implications.

This year has been challenging for major tech stocks, including those known as the “Tech Giants,” navigating significant double-digit declines in their stock prices. Although Microsoft and Meta have had relatively better performances, they both still faced more than 10% declines. Apple, Amazon, and Nvidia saw their share values fall by more than 20% this year.

Market pressures on U.S. technology stocks are attributed to concerns over spending on artificial intelligence, the rise of Chinese AI models, and fears related to potential recession spurred by tariffs imposed during the Trump administration. These tariffs raise complexities that add to the uncertainty in the sector's outlook.

Market strategists have voiced concerns that few tech companies will provide clear guidance in the coming months amidst these tariff threats. The broader economic context also feeds into this uncertainty, as the U.S. GDP growth predictions for 2025 continue to dwindle, and tariff policies further intensify recession fears. This evolving scenario is leading some strategists to question whether current consensus growth expectations adequately reflect the potential downturn risks.