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Alphabet and Tesla Were Punished for Heavy Spending. IBM Already Took Its Hit a Week Earlier.
Insider Monkey21d agoneutral
Alphabet and Tesla Were Punished for Heavy Spending. IBM Already Took Its Hit a Week Earlier.

Three big earnings reports came out this week. Alphabet Inc. (NASDAQ:GOOGL) and Tesla, Inc. (NASDAQ:TSLA) reported Wednesday after the market closed, and International Business Machines Corporation (NYSE:IBM) shared its official results the same day. All three show the same thing: spending money on AI is starting to hurt profits. However, each company’s story is different […]

Tesla's once-bullish tone on robotaxis shifts
Reuters21d agoneutral
Tesla's once-bullish tone on robotaxis shifts

By Chris Kirkham and Akash Sriram LOS ANGELES, July 23 (Reuters) - A year ago, Tesla CEO Elon Musk said the company's robotaxi network would expand at a "hyper-exponential rate" and be available to

Stocks to Watch: Alphabet, Tesla, Nestle, Intel
The Wall Street Journal21d agoneutral
Stocks to Watch: Alphabet, Tesla, Nestle, Intel

↘️ Tesla (TSLA): Elon Musk’s EV maker reported negative free cash flow of more than $1 billion in the second quarter amid heavy spending on AI and robotics. Shares fell about 5% premarket. ↘️ Alphabet (GOOGL): Shares slid more than 3% premarket after the tech company announced plans to significantly boost its capital expenditure.

As Musk pivots beyond cars, Tesla’s autos engine is under strain
Reuters Videos21d agoneutralVIDEO
As Musk pivots beyond cars, Tesla’s autos engine is under strain

<body><p>STORY: Tesla missed analysts' profit forecasts for the second quarter and, for the first time in more than two years,&nbsp; reported negative free cash flow.</p><p>:: The Samson International Smart Mobility Summit 2026</p><p>That's as&nbsp;the Elon Musk-led EV maker accelerated spending on infrastructure for its AI and robotics ambitions.</p><p>The automaker reported revenue of $28.2 billion, well above analysts' estimates.</p><p>But adjusted profit in the quarter was 33 cents per share, lower than analysts' expectation of 51 cents per share.</p><p>Tesla's capital expenditures more than doubled, pushing free cash flow to negative $1.1 billion.</p><p>The profit miss and cash burn came despite record vehicle deliveries in the quarter.</p><p>Tesla shares were down about 4% in extended trading.</p><p>The profitability squeeze on Tesla's core car business could make it harder to fund Musk's spending plans.</p><p>On a call with analysts, Musk addressed the higher capital spending, saying he was confident the investments would "yield incredible returns."</p><p>Tesla is counting on its advanced driver assistance software to spur future car sales and revenue growth.</p></body>

Bloomberg21d agobullish
Intel Needs More Than Blowout Earnings as Chips Rally Falters

(Bloomberg) -- Intel Corp. is expected to report strong second-quarter earnings after the market close Thursday, but even blowout results likely won’t be enough to reverse the stock’s July slide. Most Read from BloombergRetina Chip Designed to Restore Sight to Go on Sale in EuropeHegseth Turns to UNC, Virginia Tech After Dropping Ivy LeagueApple Plans Overhaul of MacBooks, iMac in Push to Meet AI DemandTrump’s 100% Generic Drug Duty Threatens US Low-Cost SupplyApple to Launch ‘Upgrade’ Device Le

Bloomberg22d agobearish
STMicro Plunges as Weak Forecast Eclipses Fourth-Quarter Outlook

(Bloomberg) -- STMicroelectronics NV plunged the most in a year after the chipmaker forecast third-quarter sales that missed analysts’ expectations, dimming hopes for a stronger recovery on the back of artificial intelligence data center demand. Most Read from BloombergHegseth Turns to UNC, Virginia Tech After Dropping Ivy LeagueRetina Chip Designed to Restore Sight to Go on Sale in EuropeApple Plans Overhaul of MacBooks, iMac in Push to Meet AI DemandTrump’s 100% Generic Drug Duty Threatens US

Elon Musk's Tesla Held on to Bitcoin Stockpile in Q2 Despite $112 Million in Paper Losses
Benzinga22d agoneutral
Elon Musk's Tesla Held on to Bitcoin Stockpile in Q2 Despite $112 Million in Paper Losses

Tesla Inc. (NASDAQ:TSLA) recorded paper losses on its Bitcoin (CRYPTO: BTC) holdings for the third straight quarter, but did not sell any, according to its earnings release on Wednesday. Tesla Takes BTC Losses in Bear Market As of March 31, the EV giant held $674 million in digital assets, down 45% year-over-year and 14.24% from the previous quarter. Tesla reported $112 million in paper losses on cryptocurrency investments, marking three straight quarters of red ink. The Elon Musk-led company do

Musk keeps Tesla-SpaceX merger speculation alive, cites growing overlap
Reuters22d agoneutral
Musk keeps Tesla-SpaceX merger speculation alive, cites growing overlap

Tesla CEO Elon Musk on Wednesday left the door open to the EV maker merging with his other trillion-dollar-plus-valued firm SpaceX, declining to ‌dismiss the possibility and citing growing overlap between the companies. “As you can tell from the many ‌collaborations on so many fronts with SpaceX, there’s more and more overlap,” Musk said on Tesla's earnings call. “We can't talk about, you know, ​combining companies and that kind of thing on an earnings call," he added.

Tesla-SpaceX merger? Musk cites 'more and more overlap'
Yahoo Finance Video22d agoneutralVIDEO
Tesla-SpaceX merger? Musk cites 'more and more overlap'

Elon Musk addresses shareholder questions about a potential merger between Tesla (TSLA) and SpaceX (SPCX), noting their growing operational overlap before deferring to Tesla's General Counsel, who highlights their strategic partnership and joint work on initiatives like Terafab and Digital Optimus.

S&P 500, Nasdaq close lower ahead of technology earnings
Reuters Videos22d agoneutralVIDEO
S&P 500, Nasdaq close lower ahead of technology earnings

<body><p>STORY: U.S. stocks ended lower on Wednesday, with Dow virtually flat, the S&P 500 dipping fractionally, while the Nasdaq lost more than half a percent.</p><p>Investors eagerly awaited earnings results after the closing bell from Alphabet and Tesla, the first of the Magnificent Seven megacaps to report.</p><p>Shares of Alphabet, down more than 1% at the close, dipped further in extended trading despite the Google parent topping Wall Street estimates for cloud revenue growth thanks to the AI boom.</p><p>And shares of Tesla, which also closed lower, tumbled another 2.5% in extended trading after Elon Musk's EV maker reported negative free cash flow for the first time in more than two years due to accelerated spending on AI infrastructure, battery capacity, robotaxis and next-generation manufacturing.</p><p>Bob Lang, founder and chief options analyst of Explosive Options, said that strong earnings are needed to keep the market moving higher.</p><p>“The one thing that has been pretty constant here for the past 4 or 5 months for the stock market has been strong earnings and certainly a first quarter brought us about 26, 27% earnings growth. So far in the second quarter, we're seeing it at about 16 to 17%. And that's without some of the big names that have reported for the second quarter yet. We're going to have big names like, Nvidia. We're going to have big names like Micron reporting in September. That's a couple of months away, of course. But you know, we're going to have some of these companies out there that are probably going to report some stellar earnings. And, it's really been the linchpin for keeping the stock market afloat right now.”</p><p>Shares of IBM rose in extended trading after the company cut its annual revenue growth forecast, days after shocking Wall Street with a warning that corporate spending was shifting toward AI-focused data-center gear at the expense of its software and mainframe computers.</p><p>:: ServiceNow Handout</p><p>And shares of ServiceNow, down about 6.5% at the close, rose more than 3% after hours as the company raised its forecast for annual subscription revenue for the second time after beating second-quarter revenue and profit estimates, driven by growing demand for its AI-powered software.</p><p>Among other tech names, shares of Super Micro Computer rallied almost 20%, making it the S&P 500's biggest percentage gainer, a day after the server maker said it had secured more than $60 billion in new orders in its fiscal fourth quarter.&nbsp;</p></body>