Tech Earnings Diverge: Google Soars on AI Bets While Tesla Stumbles
Alphabet's stock surged in after-hours trading as the tech giant surpassed Wall Street's Q2 earnings expectations, fueled by robust performance in search, cloud, and YouTube. Investors rewarded aggressive AI investments, sending shares sharply higher.
Tesla's stock cratered 8% following disappointing results and weak guidance. The electric vehicle maker's earnings miss contrasted sharply with Alphabet's success, underscoring the volatility of tech sector performance during earnings season.
The divergence highlights how even sector peers can experience radically different market reactions based on execution and forward-looking statements. Alphabet's AI focus appears to be paying dividends, while Tesla faces growing skepticism about its growth trajectory.
