Google parent Alphabet and Tesla shares plunged after both reported negative free cash flow and announced billions more in AI and unspecified investments, raising investor skepticism about returns on high spending.
Alphabet and Tesla shares fell sharply after both companies reported negative Q2 free cash flow and signaled increased AI spending, raising investor concerns about mounting costs. Tesla lost $200B and Alphabet $300B in market cap, while Amazon also declined.
Alphabet and Tesla shares dropped in premarket trading after both companies signaled increased AI spending, raising investor concerns about mounting costs. Alphabet raised its capex forecast, and Tesla reported a significant surge in Q2 capex.
Technology stocks, particularly chipmakers like Broadcom and Micron, declined on Thursday due to investor concerns over AI spending and market expectations catching up with the sector's strong performance. Analysts suggest a market 'rest' is due after significant gains.
Technology stocks declined Thursday, led by chipmakers Broadcom, Micron, and Marvell, as investors exited the semiconductor sector. Concerns over AI spending slowdown and chip price drops contributed to the sell-off.
Alphabet and Meta both reported stronger-than-expected earnings, with Alphabet's stock rising 7% and Meta falling 7% in extended trading. The divergence stems from Alphabet's massive cloud infrastructure business that monetizes AI investments, while Meta lacks this revenue stream. Alphabet raised 2026 capex guidance to $180-190 billion, while Meta increased its guidance to $125-145 billion.
