New York, USA – Tesla stocks took a hit by declining 8.6% in premarket trading following the company’s second-quarter profit report. Despite surpassing revenue expectations, Tesla fell short on adjusted earnings per share, coming in at 52 cents compared to analysts’ estimates of 61 cents. This marked the second consecutive quarter of declining profits for Tesla, with an operating profit margin of 6.3%, below the estimated 8%.
The impact of Tesla’s performance was not contained to the company alone as shares of other electric vehicle (EV) makers also experienced a downturn. Rivian Automotive saw a decline of 4.6%, while Lucid Group was down by 3.3%.
Alphabet, the parent company of Google, reported earnings per share of $1.89 in the second quarter, surpassing analysts’ estimates of $1.85. Despite the positive news, Alphabet’s shares were down 4.5%. The company’s cloud revenue exceeded $10 billion for the first time, indicating growth in that sector.
Nvidia, a key player in the semiconductor industry, experienced a 3% drop in its stock price to $118.91 following Alphabet’s earnings report. The company’s capital spending increased, particularly in artificial intelligence (AI), but it kept its spending guidance for the rest of the year steady.
In the telecommunications sector, AT&T reported a second consecutive quarter of stronger-than-expected net phone subscribers. The company’s postpaid phone net adds exceeded expectations, leading to a 2.9% rise in shares.
Visa reported fiscal third-quarter adjusted earnings that met expectations, while revenue slightly missed the mark. The company noted a 7% increase in payments volume during the period.
Texas Instruments, a semiconductor company, reported second-quarter earnings slightly in line with Wall Street estimates. The company also provided revenue guidance for the third quarter, falling below analysts’ expectations.
Seagate Technology saw a 3.5% increase in its stock price after beating Wall Street’s expectations with its fiscal fourth-quarter earnings and revenue.
In the renewable energy sector, Enphase Energy’s second-quarter adjusted earnings missed estimates, with revenue falling short of forecasts. Despite this, the company announced optimistic revenue projections for the third quarter.
Lamb Weston, a frozen-potato product maker, experienced a significant setback with a 16% drop in its stock price after missing analysts’ earnings expectations. The company cited market share losses and a slowdown in restaurant traffic as contributing factors.
Looking ahead, investors are awaiting earnings reports after the closing bell from various companies, including International Business Machines (IBM), Chipotle Mexican Grill, ServiceNow, Ford Motor, and KLA Corp.
As the market continues to react to the latest earnings reports and projections, investors are closely monitoring the performance of key players in various industries.
