Amazon hit when strengthening the dollar, underlining the risks in technology for confidence abroad

He Strengthening of the dollar It is raising challenges for the largest American technological companies, which have become increasingly dependent on income abroad. With other currencies weakening, money earned elsewhere is worth less when it becomes dollars.

Amazon He should suffer less from his Megacap partners, since the electronic commerce giant generates a higher percentage of sales in the US. Fourth Quarter Gains Report On Thursday, Amazon said the exchange rates are the culprits of the prognosis of the company’s first weakest quarter and the possibility of its slower income registered.

Revenue in the current quarter will land between $ 151 billion and $ 155.5 billion, which suggests an annual growth of only 5% to 9%. The slowest quarter for Amazon’s growth occurred in mid -2022, when income increased by 7.2%.

“This guide anticipates an unusually large and unfavorable impact of approximately $ 2.1 billion, or 150 basic points, from exchange rates,” Amazon said in the profit statement.

In his call of profits that he followed, Amazon said he saw $ 700 million “more wind against currencies of what we expected” in the fourth quarter. During the period, international revenues totaled $ 43.4 billion, or 23% of general sales.

In AppleApproximately 58% of income came from abroad in the last period. For the goal, it was 55%, Alphabet reported around 52%, Microsoft slightly less than 50% and Tesla a little more than 50% for all 2024.

He US dollar index – That measures the green back against a rival basket – reached its highest level in more than two years last month, before President Donald Trump’s opening. The dollar rose constantly from the end of November to mid -January and has since fallen slightly.

The dollar can be particularly volatile in the coming weeks and months due to the uncertainties surrounding Trump’s tariff policies and the threat of a commercial war, especially China, along with a lack of clarity on the foreign policy of the United States, given The comments Trump has potentially try to take care of Greenland and Gaza.

This is what other companies said on the issue of currencies when issuing their financial results.

Microsoft The CFO Amy Hood said the currencies “did not have a significant impact on our results and was approximately in line with the expectation”, although for the current quarter it would reduce income growth in “more than 1 point.”

Susan li, Goal The Chief of Finance said that the company expects “a wind against three points in the first quarter” after the change of foreign exchange “approximately neutral to the income in the fourth quarter, only with the strengthening of the dollar, particularly against the euro”.

Alphabet The financial director Anat Ashkenazi said that investors can “wait for a wind against our revenues from strengthening the US dollar in relation to key coins in the fourth quarter versus the fourth quarter of 2024”.

Apple’s Chief of Finance, Kevan Parekh, warned last week that, “as the dollar is significantly strengthened, we hope that the currencies are a wind against and that it has a negative impact on the income of approximately 2.5 percentage points of year after year. “

The boom of the dollar will lead investors to pay close attention to Work numbers Outside Friday. When the Labor Statistics Office releases its non -agricultural payrolls, they count for January, it is expected to show a growth of 169,000, below 256,000 in December, but almost in line with the average of three months of the last. It is projected that the unemployment rate will remain at 4.1%, according to Dow Jones’s consensus for the report.

After that, the technology industry will expect to see what Nvidia You have to say about currencies when the chips manufacturer reports profits later in February. In the period ending in October, Nvidia generated about 58% of its income from outside the United States

– Deirdre Bosa of CNBC contributed to this report

LOOK: Why a stronger dollar could mean problems for great technology