Tech Giants Alphabet and Tesla Send Stocks into Downturn: Disappointing Earnings Reports and Rising Interest Rates

New York City, New York, USA United States of America
Alphabet's spending on artificial intelligence was higher than expected, and YouTube advertising revenue fell below estimates.
Rising interest rates have put tech stocks under scrutiny.
Tech giants Alphabet and Tesla reported disappointing earnings on July 24, 2024.
Tesla missed profits and postponed the unveiling of autonomous taxis.
The selloff affected major indices such as the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite.
Tech Giants Alphabet and Tesla Send Stocks into Downturn: Disappointing Earnings Reports and Rising Interest Rates

Stocks experienced a significant decline on July 24, 2024, as disappointing earnings reports from tech giants Alphabet and Tesla sent the market into a downturn. The selloff affected major indices such as the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite.

Alphabet reported higher spending on artificial intelligence than expected during its Q2 earnings report. Despite a bottom line beat, YouTube advertising revenue fell below consensus estimates, causing shares to drop nearly 4%. Tesla missed profits and postponed the unveiling of autonomous taxis, leading to a 12% decline in shares.

The tech sector has been under scrutiny as investors weigh the potential impact of rising interest rates on high-valuation stocks. The selloff comes after a strong rally in megacap stocks that have driven the market's record run since late 2022.

Google parent Alphabet and Tesla are part of a group of seven tech companies, known as the 'magnificent seven,' which have contributed significantly to overall earnings growth and higher valuations. The underwhelming performance from these companies may indicate a potential shift in market sentiment towards value stocks or sectors less affected by interest rate hikes.

The selloff also comes ahead of earnings reports from other tech giants, including Microsoft, Meta Platforms, Amazon, and Apple. Investors will closely watch these reports for signs of resilience in the sector and any potential impact on the broader market.


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Confidence

91%

Doubts
  • Was the impact of rising interest rates on tech stocks overstated in the article?
  • Were there any other significant factors contributing to the selloff besides earnings reports?

Sources

92%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Nasdaq drops 2% as disappointing Tesla and Alphabet earnings send tech lower: Live updates

CNBC News Lisa Kailai Tuesday, 23 July 2024 22:09
  • Unique Points
    • Nasdaq dropped 2.3% on July 22, 2024.
    • Alphabet reported a bottom line beat but YouTube advertising revenue fell below consensus estimate, causing shares to drop nearly 4%.
    • Tesla reported weaker-than-expected results and a 7% year-over-year drop in auto revenue, leading to a 12% decline in shares.
  • Accuracy
    • Google parent Alphabet’s revenue increased by 14% year over year, driven by its search and cloud businesses.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

75%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Stocks Slide As Major Tech Earnings Get Off To ‘Underwhelming’ Start

Forbes Magazine Derek Saul Wednesday, 24 July 2024 00:00
  • Unique Points
    • Google parent Alphabet reported a bottom line beat but YouTube advertising revenue fell below consensus estimate, causing shares to drop nearly 4%.
    • Tesla reported weaker-than-expected results and a 7% year-over-year drop in auto revenue, leading to a 12% decline in shares.
  • Accuracy
    • Stock indexes slid after several massive companies reported earnings that failed to impress investors.
    • Alphabet reported a bottom line beat but YouTube advertising revenue fell below consensus estimate, causing shares to drop nearly 4%.
    • Alphabet announced a $0.20 cash dividend.
  • Deception (30%)
    The article uses sensationalist language in the title and throughout the body to grab readers' attention. The author also engages in selective reporting by focusing on the negative earnings reports of a few companies and ignoring positive reports or context that may mitigate the impact of those negative reports.
    • Stocks slid Wednesday after several massive companies reported earnings which failed to impress investors, as questions over whether fundamentals can support the stock market's record prices come into the forefront.
    • Tesla stock's 11% dive after reporting a 45% annual decline in profits would be its worst day since January, Visa stock's 4% fall after the company's first quarterly revenue miss since 2020 puts it on track for its steepest daily decline since May 2022 and Alphabet stock's 4% drop, following a double earnings beat marred by comments about artificial intelligence capital expenditures, would be its worst day since February.
    • The losses followed Tuesday afternoon earnings reports from three of the U.S.'s 15 most valuable companies that disappointed the market across the board.
  • Fallacies (85%)
    The article contains a few informal fallacies and an example of inflammatory rhetoric. The author uses sensationalist language such as “stocks slide” and “shaky earnings sent stocks slumping” to create a sense of urgency and fear around the topic. Additionally, the author references a potential summer selloff based on recent gains and geopolitical events without providing specific evidence or quotes from experts. No formal fallacies were found.
    • Stocks slide as major tech earnings get off to ‘underwhelming’ start
    • The tides have shifted over the last week. The S&P and Nasdaq are down 3% and 5% from their respective record closing prices set earlier this month.
    • The U.S. will report its second-quarter gross domestic product Wednesday morning, offering a glimpse into how well the broader economy is performing.
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

95%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Stock Market Today: Dow, S&P Live Updates for July 24

Bloomberg News Now Rita Nazareth Wednesday, 24 July 2024 15:24
  • Unique Points
    • Alphabet reported higher spending on AI than expected
    • Tesla missed profits and postponed the unveiling of autonomous taxis
  • Accuracy
    • Stocks got hammered and the S&P 500 was headed towards its worst session in almost three months.
    • Alphabet reported higher spending on AI than expected, causing a 4% decrease in its stock price.
    • Tesla missed profits and postponed the unveiling of autonomous taxis, resulting in a 12% decrease in its stock price.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

88%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Stock market news today: US stocks slip as mixed results from Alphabet, Tesla kick off Big Tech earnings

Yahoo Finance Karen Friar Wednesday, 24 July 2024 15:25
  • Unique Points
    • Alphabet reported a beat on both the top and bottom lines in Q2 2024.
    • Tesla missed earnings expectations in Q2 2024 but delivered a beat on the top line.
  • Accuracy
    • Alphabet reported a bottom line beat but YouTube advertising revenue fell below consensus estimate in one article, while another article states that Alphabet's revenue increased by 14% year over year.
    • Tesla reported weaker-than-expected results and a 7% year-over-year drop in auto revenue, leading to a 12% decline in shares according to one article, but another article reports Tesla reported gross margin of 18% in Q2 2024, higher than consensus calls of 17.4%.
  • Deception (80%)
    The article contains editorializing and selective reporting. The author uses phrases like 'mixed results' and 'disappointed' to manipulate the reader's emotions towards the companies mentioned in the article. However, she also provides objective information about the financial performance of these companies. She focuses on negative aspects of Alphabet's earnings report while highlighting positive aspects for Tesla, which is selective reporting.
    • But network revenue, services revenue, along with subscriptions, platforms and devices revenue disappointed.
    • It reported gross margin of 18%, ahead of consensus calls of 17.4% But a miss on free cash flow, capital expenditure and operating income led to a drop in the stock in after-hours trading with shares down more than 5%.
    • Shares ticked lower.
    • The benchmark S&P 500 (<sup>GSPC</sup>) and Dow Jones Industrial Average (<sup>DJI</sup>) dropped about 0.2% and 0.1%, respectively,
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication