Tech giants Tesla (Nasdaq: TSLA) and Alphabet (Nasdaq: GOOG), the parent company of Google, saw their shares tumble in early trading Wednesday following their second-quarter earnings reports. Despite both companies beating overall revenue expectations, investors reacted negatively to specific segments that fell short of analyst predictions.
As of 9:54 AM EDT, Tesla shares were down 11.36% at $218.38, while Alphabet shares dropped 3.83% to $176.57.
Tesla Posts Mixed Q2 ResultsTesla reported Q2 2024 earnings after market close on July 23, with revenue of $84.74 billion slightly surpassing the expected $84.19 billion.However, the company’s core automotive business showed signs of strain, with revenue declining 7% year-over-year to $19.9 billion. Vehicle deliveries also fell 5% compared to the same period last year, totaling 443,956 units.Despite the challenges in its automotive segment, Tesla saw significant growth in other areas. Energy storage and generation revenue doubled to $3.01 billion, while services and other revenue grew 21% to $2.61 billion. The company also achieved a record energy storage deployment of 9.4 GWh and announced that its Cybertruck became the best-selling EV pickup in the U.S. during Q2.
Alphabet Reports Strong Overall Performance in Q2 But YouTube Growth Lagged ExpectationsAlphabet’s Q2 2024 earnings, also released on July 23, showed a 14% year-over-year increase in revenue to $84.74 billion. The company’s net income rose to $23.6 billion, or $1.89 per share, beating analyst expectations of $1.84 per share. Google Cloud was a particular bright spot, surpassing $10 billion in quarterly revenue for the first time.However, while growing to $8.66 billion, YouTube ad revenue fell short of the $8.93 billion analysts had anticipated. This miss likely contributed to the negative market reaction.Alphabet highlighted its continued focus on AI innovation and announced that its self-driving car unit, Waymo, is now making 50,000 weekly paid public rides. The company also committed a $5 billion multi-year investment to Waymo.More By This Author:3 Russell Stocks To Buy Before The Potential Upcoming Rally Stocks To Watch Today: UPS, PM, And MSCIGeneral Motors Co. Beats Q2 Expectations With $47.9B In Revenue
