BofA notes that President Trump’s newly announced tariffs were larger than anticipated and are “a direct negative” for discretionary retail sales and advertising. In addition, the potential for increasing recession fears fueled by the tariffs are “a relative negative for the entire Internet sector,” which the analyst notes underperformed in 2008 and 2022 as fears of a recession grew. The “only potential silver lining” is that proposed rates could be viewed as a negotiation tool that may not be fully implemented, adds the analyst. Stocks mentioned in the report include Amazon (AMZN), Booking (BKNG), eBay (EBAY), Meta (META), Pinterest (PINS), Reddit (RDDT), Snap (SNAP), Take-Two (TTWO) and Uber (UBER).
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