Alphabet and Tesla Shares Plunge as AI Spending Raises Investor Concerns
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Shares of Alphabet and Tesla fell sharply after both companies reported significant increases in spending related to artificial intelligence. This surge in costs has raised alarms among investors, leading to a broader sell-off in tech stocks, with the Magnificent 7 losing a total of $797 billion.
The disappointing quarterly results from Tesla have particularly intensified scrutiny over Elon Musk's strategy to pivot the electric vehicle maker towards AI and robotics. As Wall Street grapples with these developments, concerns about the sustainability of such high spending amidst a challenging macroeconomic environment continue to mount.
Sources
Every quote below is verbatim from the article it is attributed to.
“Shares of Alphabet and Tesla dipped after the companies reported massive spending increases in their quarterly earnings reports.”
CNBC — Alphabet and Tesla test Wall Street's patience as AI spending overshadows growth“Tesla Inc. shares plunged after disappointing quarterly results raised questions about Elon Musk’s plan to refocus the electric vehicle maker on artificial intelligence and robots.”
Bloomberg — Tesla Sinks on Investor Angst Over AI Spending, Profit Drop“Wall Street is growing increasingly concerned about the hundreds of billions of dollars Big Tech is spending on artificial intelligence just as the resurgence of the war in Iran clouds the global macroeconomic outlook.”
Bloomberg — Magnificent 7 Lose $797 Billion as AI Skeptics Dump Tech Stocks
“The Mag7 had its worst day Thursday since the tariff-driven selloff last April.”
Fortune — AI is forcing Big Tech to do something it’s never done: Spend more than it earns, and Wall Street hates it“As major tech companies race to capitalize on a new wave of AI technology, investors wonder when financial benefits will appear.”
bbc — Google and Tesla shares plunge as AI spending rattles markets“Arjun Kharpal / CNBC: Tesla stock closed down 14.52% and Alphabet closed down 6.89% after they signaled increased AI spending, amid worries about the mounting costs of the AI boom — Shares of”
techmeme — Tesla stock closed down 14.52% and Alphabet closed down 6.89% after they signaled increased AI spending, amid worries about the mounting costs of the AI boom (Arjun Kharpal/CNBC)“Both Tesla and Alphabet signaled higher spending as they invest in artificial intelligence.”
CNBC — Tesla, Alphabet lose hundreds of billions in value in post-earnings stock plunge“Amazon stock slipped below its 200-day moving average after Google's Q2 report reignited AI cost fears.”
IBD — Amazon Stock Slips Below Key Level As Google Sets Tone For Hefty AI Spending
Earlier versions
- Jul 23, 1:48 AM — Alphabet and Tesla Shares Dip After Massive AI Spending Increases (1/1)
- Jul 23, 3:57 PM — Tesla and Alphabet Shares Fall as AI Spending Concerns Drive Investor Anxiety (3/3)
- Jul 23, 8:26 PM — Tesla Falls 13%, Alphabet Sinks 7% Amid AI Spending Concerns (6/5)