Tech giants Tesla and Alphabet faced a challenging day on Wall Street with lower futures pointing to a negative opening. Tesla saw its shares drop over 7% after disappointing second-quarter results, including a decline in electric vehicle sales. Meanwhile, Alphabet’s shares fell 2% due to a miss on YouTube ad revenue. Both earnings are expected to impact European markets as well.
Tesla reported earnings per share of $0.52 on revenue of $25.5 billion, missing estimates. Automotive sales fell by 7% year-on-year, with net income down 42%. However, energy generation revenue doubled, showing potential for growth in new areas. The company has also delayed the launch of Robotaxis to October and expects better car delivery numbers in the current quarter.
Alphabet, on the other hand, reported revenue of $84.74 billion in the second quarter, up 14% year-on-year. Google Cloud revenue reached $10.35 billion, surpassing expectations. However, YouTube ad revenue fell short of estimates at $8.66 billion.
Overall, Alphabet’s performance exceeded expectations but did not offer a major surprise, while Tesla faces challenges in its core business of automotive sales but sees growth potential in new areas. Investors will be closely watching both tech giants as they navigate through the ever-evolving tech landscape.
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