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Stock Market News: Nasdaq Sinks as Tesla and Alphabet Earnings ...
2024-07-24 19:55:08
Earnings
Markets
Stocks

Stock Market News: Nasdaq Sinks as Tesla and Alphabet Earnings Disappoint

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The Nasdaq experienced a significant decline of nearly 3% as both Tesla and Alphabet reported disappointing earnings. This tech sell-off also impacted the benchmark S&P 500 and Dow, leading to a fall in chip stocks.

Tesla's stock slid over 10%, and investors are now awaiting more earnings reports, as well as GDP and inflation data. The decline in tech stocks was seen as an overreaction by some analysts, who believe that the sector will benefit from the AI boom.

Meanwhile, Alphabet's stock fell despite beating revenue and earnings expectations. Guidance about near-term margin pressures from AI and infrastructure led to investor concerns.

Despite strong growth in key segments like Google search and cloud, the stock's long-term trajectory suggests continued margin expansion. Tesla's mixed Q2 results also disappointed investors, with lower-than-expected earnings and a vague outlook on product timelines.

The company has now missed earnings targets for four consecutive quarters, raising questions about its ambitious future plans. Overall, investors are advised to be cautious of stocks with weak fundamentals and high valuations.

Related news on that topic:

Alphabet's Impressive Q2 Performance Reflects Profit Surge

Alphabet, Google's parent company, showcased remarkable financial performance in Q2, surpassing revenue estimates with sales reaching $84.7 billion, a 14% increase. The profit soared by 29% to $23.6 billion, exceeding Wall Street's forecasts of $22.7 billion. Notably, Google's ad-driven consumer services demonstrated stability, with significant growth in advertising and Google Cloud revenues. Despite Ruth Porat's departure as CFO, the company remains focused on tech advancements, transitioning with Anat Ashkenazi taking over the CFO role. The financial figures reveal a robust quarter for Alphabet, emphasizing its continued success and future prospects in the tech industry.

Investing in the Future: AI Stocks to Consider

Investors looking to capitalize on the transformative potential of artificial intelligence (AI) should consider these three stocks: Nvidia, Microsoft, and Palantir. Despite potential challenges, Nvidia's AI chip dominance and CUDA software provide a strong competitive advantage. Microsoft expects double-digit earnings growth and Palantir's flexible AI platform has the potential to expand to over 20,000 large businesses. Meanwhile, Meta Platforms offers AI-driven growth potential with various AI products and technologies. These stocks provide investors with diverse exposure to the booming AI industry. However, caution is advised, as the AI trade faces risks due to lack of impact on revenues and earnings. Furthermore, the performance of AI stocks can be volatile, as seen with Palantir's recent stock price increase. Nevertheless, with the generative AI industry expected to grow significantly and software being touted as the next big AI opportunity, investing in AI stocks can be a lucrative long-term strategy.

Read 18 more recent news on this topic

The press radar on this topic:

The Street
25. Juli 2024 um 23:47

Tesla earnings, vague outlook dismay investors TheStreet Daily Newsletter

Economy
Finance
Technology
Tesla reported lower-than-expected Q2 earnings despite record revenue and higher-than-expected vehicle deliveries; CEO Musk was vague on product timelines, including Robotaxi, new Full-Self-Driving features, and Tesla Cybertruck. Shares dropped 8% after hours due to a $622 million restructuring charge and the lowest gross profit margin in five years. Tesla has now missed earnings targets for four quarters in a row, with analysts noting the company's ambitious vision for the future, including M..
Yahoo Finance
24. Juli 2024 um 12:00

S&P 500: Look Out Below If You Still Own 7 Stocks When The Crash Comes | Investor's Business Daily

Finance
Economy
The S&P 500 has surged 17% this year, but its cyclically adjusted price/earnings (CAPE) yield is near all-time lows, suggesting the market is overvalued and may need to plunge over 50% to reach long-term averages. Stocks with high valuations compared to their 5-year averages, like Gilead Sciences (GILD), Merck (MRK), and International Paper (IP), could be vulnerable if the market experiences a correction, as the S&P 500 only pays slightly better than a risk-free Treasury Inflation Protected Se..
Yahoo Finance
24. Juli 2024 um 15:08

Tesla stock sinks after mixed Q2 results, says 'affordable' EVs on track for 2025 debut

Finance
Economy
Technology
Environment
Tesla reported Q2 revenue of $25.05 billion, below estimates, and adjusted profits of $0.52, shy of expectations; delivered 443,956 vehicles globally and deployed 9.4 GWh of battery energy storage, a quarterly record; Robotaxi unveil delayed to October 10 with 'unboxed manufacturing strategy'; growth this year 'notably lower' than 2023; stock fell over 11% despite 'affordable' EVs on track for 2025 debut, Cybertruck production tripling, and Semi factory on track for 2025.
Yahoo Finance
24. Juli 2024 um 15:33

Why Alphabet Stock Is Sinking Today

Finance
Technology
Economy
Alphabet stock fell despite Q2 beats on revenue and earnings, as investors reacted to guidance about near-term margin pressures from AI and infrastructure; key segments like Google search and cloud saw strong growth, and the company's operating income margin and diluted EPS improved, but the long-term trajectory points to continued margin expansion, and the stock looks attractively valued, though it was not recommended by the Motley Fool Stock Advisor team.
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