Microsoft is celebrating its 50th anniversary with a Seattle event highlighting its latest AI developments, giving investors a reason to breathe a sigh of relief as the company’s stock has fared better than peers in the face of global tariffs. The tech giant’s shares have declined by only 5.8% since Thursday’s tariff announcement, compared to double-digit percentage losses from Meta, Apple, Amazon, Nvidia, and Tesla.
Analysts attribute Microsoft’s resilience to its limited exposure to tariffs due to its focus on enterprise customers and cloud computing offerings. A significant portion of the company’s revenue streams are tied to long-term contracts with corporate clients, providing extra stability. In fact, Microsoft’s cloud segment accounted for 43% of the company’s total revenue in fiscal year 2024.
Industry experts predict that companies like Microsoft will be “safe havens” due to their lower exposure to tariffs and higher enterprise revenue mix. According to analysts, Microsoft is well-positioned despite not being entirely immune to tariffs, as its business model relies on selling cloud applications and infrastructure to corporate customers. Even if there were reciprocal tariffs, it’s unclear how they would impact software services.
In contrast, companies like Apple and Amazon face significant challenges due to their heavy reliance on physical products and international supply chains. As such, they are more vulnerable to the impacts of tariffs and a potential recession. However, Microsoft’s investment in AI and its focus on enterprise customers could provide some protection against reduced corporate spending and potential downturns.
Source: https://fortune.com/2025/04/04/microsoft-stock-trump-tariffs-safe-haven-magnificent-7-big-tech-bloodbath