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Tesla and Alphabet shares plunge after signaling higher AI spending

CNBC reports both companies’ post-earnings selloffs reflected guidance that points to increased spending tied to artificial intelligence investment.

Reported · Written up by our desk · Equities

Tesla and Alphabet both saw sharp declines after their earnings, wiping out hundreds of billions of dollars in market value in the immediate post-earnings reaction, according to CNBC Markets.

CNBC World also linked the selloff to signals from each company that they plan to raise spending as they invest in artificial intelligence.

The reports describe the market reaction as tied to higher planned expenditures, with investors adjusting expectations in response to the companies’ outlook.

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