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Tesla shares slide after earnings miss as Alphabet raises capex
Tesla reported $28.24 billion in Q2 revenue and adjusted EPS of $0.33, below estimates, while Alphabet said cloud revenue rose 82% year over year.
Big Tech earnings kicked off this week with results from Google parent Alphabet and Tesla, and the market reaction was broadly negative, according to Yahoo Finance.
Tesla posted Q2 revenue of $28.24 billion and adjusted earnings per share of $0.33, versus $0.50 expected, with the stock down as much as 7% in pre-market trading. Tesla also reported mixed results, with its cash burn rate coming in less than expected, and investors appeared to look for more detail on its physical AI buildouts.
Alphabet, however, beat expectations on the top and bottom lines as cloud revenue jumped 82% year over year. The stock still fell about 5% after the company raised its top-line capex to $205 billion, creating uncertainty for investors.
Intel is set to report on Thursday, while AMD will host its Advancing AI event in San Francisco, where it is expected to share updates across its data center product lines. The semiconductor sector had already seen rotation away from the AI trade, Yahoo Finance said, though Intel and foundry customer announcements could shift sentiment again.