Alphabet's stock fell 4% after earnings while Tesla hit record revenue of $28.2 billion but saw operating margin collapse to 1.4% from 4.1%. Tesla's quarterly spending jumped 142%, with full-year capital expenditure projected to exceed $25 billion as the company invests heavily in AI.
Alphabet stock fell around 4% after hours. Tesla, their 2nd quarter revenue was $28.2 billion, a record, up $26 billion from a year ago, well ahead of expectations. 480,126 vehicles delivered, also a record, but the profit picture was thinner. Operating margin was 1.4%, down from 4.1% a year ago. Adjusted earnings per share came in at $0.32. Analysts were looking for $0.53. Tesla is spending money. CapEx in the quarter was up 142%. The full-year CapEx expected to be more than $25 billion, roughly 3 times more than last year. And their free cash flow, meaning the amount of money that's just coming in with no expected outflow, negative $1.1 billion.
How to evaluate AI growth stocks (Nvidia, Oracle, CoreWeave) beyond market hype
How to evaluate AI growth stocks (Nvidia, Oracle, CoreWeave) beyond market hype
