Tesla (TSLA) and Alphabet (GOOGL) are due to report earnings this week. What arrives from the first members of the Magnificent 7 to report this earnings season could set the tone for what could be a rough quarter for Big Tech.

The year so far hasn’t been kind to the group of tech giants’ stocks, all of which have all suffered double-digit declines. The best-performing members of the group, Microsoft (MSFT) and Meta Platforms (META), are down over 10% in 2025, while Apple (AAPL), Amazon (AMZN), and Nvidia (NVDA) have lost more than 20%. Tesla (TSLA) has seen its stock fall over 40%. 

Worries about tech’s spending on artificial intelligence, competition from Chinese rivals, and the possibility of an economic downturn driven by President Donald Trump’s tariffs have pressured the group of stocks, with investors watching closely how companies tackle the uncertainty. 

“We expect hardly any tech companies to give guidance over the next month,” Wedbush analysts told clients Thursday, citing an increasingly restrictive trade environment after Nvidia and Advanced Micro Devices (AMD) last week warned they would take a hit from new restrictions on chip exports to China. 

A ‘Unique Position’ for Tesla; Possible Tariff ‘Ripple Effects’ for Alphabet

Policy-related headwinds could be particularly strong for Tesla, due to report Tuesday, after signs of declining sales in many of the EV maker’s major markets and ongoing political backlash against CEO Elon Musk’s involvement in the Trump administration.

Still, analysts are more bullish than bearish on the stock, pointing to Tesla’s developments related to self-driving cars and AI.  

“Tesla is in a unique position: its opportunity in physical AI is so compelling that investors are willing to look past what will likely be a difficult year,” Deepwater Asset Management’s Gene Munster wrote recently. “In my view, 2025 doesn’t matter; the business is poised for meaningful improvement starting next year.”

Alphabet, which is due to release results Thursday, could be better-equipped along with Meta and Amazon to weather the new trade environment than many others in the internet sector given their scale, Morgan Stanley analysts said recently. However, they added, the “ripple effects” of tariff worries, including weakness in digital ad demand, could weigh on the sector broadly.

Meta and Microsoft are set to report next Wednesday. Amazon and Apple are scheduled to follow a day later.

Nvidia is due to report in late May.