Robert Way
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Foxconn Q1 profit soars on AI demand; tariffs woes weigh on FY outlook. (00:28) Airbnb goes beyond rentals with full-service travel offerings. (02:34) YouTube bags rights to stream NFL game for the first time. (03:22)
This is an abridged transcript.
Foxconn Technology’s (OTCPK:FXCOF) first quarter profit jumped 91% beating estimates driven by demand for AI servers, but the outlook was overshadowed by uncertainty around tariffs.
The Apple (AAPL) supplier — which is formally known as Hon Hai Precision (OTCPK:HNHAF) (OTCPK:HNHPF) — said net profit attributable to the parent company surged 91% year-over -year to NT$42.12B ($1.39B).
The numbers beat analysts’ estimate of NT$37.8B, according to a report from Reuters.
Foxconn’s Chairman Young Liu said on an earnings call that U.S. tariffs will bring more challenges and his outlook for the full year was more cautious than before, the report added.
The company has a big manufacturing presence in China, though the U.S. and China have agreed to a significant reduction in tariffs on each other’s goods for 90 days.
Foxconn adjusted the 2025 outlook to significant growth from strong growth citing foreign exchange.
Liu, in the earnings release, pointed out that in addition to tariffs, geopolitics, and changes in monetary policy around the world may affect the global economy, and even though current sales forecasts have not changed much, the exchange rate may affect revenue after conversion into New Taiwan dollars. However, revenue in U.S. dollars remains unchanged.
Foxconn’s first quarter revenue climbed 24% year-over -year to NT$1.644T.
The company said the keyword to sum up first quarter performance is without a doubt: “A.I.” Liu reiterated the view that 2025 is the first year of AI, saying that the performance of the AI server business is quite impressive, with revenue growing by more than 50% compared to the same period last year, indicating that demand for computing power is still very strong.
Foxconn noted that AI server revenue in the second quarter is expected to nearly double both on-quarter and on-year basis.
Nvidia (NVDA) is among the company’s prominent customers.
Airbnb (NASDAQ:ABNB) is upgrading its offerings just in time for summer travel.
The company debuted Airbnb Services and Experiences.
Guests can find professionals that offer services ranging from spa treatments and photography to local tour guides and cultural experiences.
Airbnb says they thoroughly vet these professionals and they are required to have an average of 10 years of experience. In addition, there’s an identity qualification process and they have to submit relevant licenses and certifications.
The offerings will be available beginning this summer on the newly designed Airbnb app.
Airbnb (ABNB) shares ended Tuesday’s regular trading session with a gain of nearly 3%, putting the stock in the plus column for a fifth straight day.
YouTube (NASDAQ:GOOG) (NASDAQ:GOOGL) is getting into the football business.
The company picked up exclusive rights to stream its first NFL game.
YouTube will stream the Friday night Week 1 game of the 2025 NFL season. The game will be available to stream for free on YouTube globally, except in Canada and certain other countries.
The financial terms for the streaming agreement were not disclosed.
YouTube’s business chief Mary Ellen Coe said this will be an “interactive viewing experience” with “creators right at the center of the experience.”
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Catalyst watch:
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Tyson Foods (TSN) CEO Donnie King will participate in a fireside chat at the 20th Annual BMO Global Farm to Market Conference.
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Upstart (UPST) will hold its AI Day event.
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The three-day Consensus 2025 event will take place in Toronto. The three-day crypto conference hosted by CoinDesk is one of the most highly anticipated events of the year.
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The 2025 Sohn Investment Conference will be held in New York City. The conference has led to share price jumps for some stocks in the past after hedge funds made pitches.
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The two-day Twilio (TWLO) Signal conference will begin in San Francisco. The tech company is expected to showcase its latest products and features.
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Netflix (NFLX) and Warner Bros. Discovery (WBD) will hold presentations in New York City as part of Upfront Week. Alphabet’s (GOOG) YouTube will also hold its Brandcast event.
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Harley-Davidson (HOG) will hold its annual shareholder meeting amid activist pressure from H Partners. The outcome of the board vote will shape Harley-Davidson’s leadership and strategic direction.
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Notable companies due to appear at the two-day J.P. Morgan Global Technology, Media and Communications Conference include The New York Times (NYT), Wayfair (W), Carvana (CVNA), IBM (IBM), Robinhood Markets (HOOD), and Charter Communications (CHTR).
Now let’s take a look at the markets ahead of the opening bell. Dow, S&P and Nasdaq futures are flat. Crude oil is down 1.2% at $62/barrel. Bitcoin is down 0.7% at $103,000. Gold is down 0.6% at $3,233.
The FTSE 100 is flat and the DAX is down 0.3%.
The biggest movers for the day premarket: American Eagle Outfitters (NYSE:AEO) -15% — Shares slumped after the company pulled its full-year forecast, citing macro uncertainty, and said it is “actively evaluating” its forward plans.
On today’s economic calendar:
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9:10 am Federal Reserve Vice Chair Philip Jefferson will speak on the economic outlook before the virtual Annual Conference of Second District Directors and Advisors.
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5:40 pm San Francisco Federal Reserve Bank President Mary Daly will participate in fireside chat before the California Bankers Association 25th Annual Conference and Directors Forum.
Editor’s Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.
