What To Watch For
Meta’s next earnings report on July 29 will allow management to address how much it plans to spend on AI infrastructure in the second half of the year and whether its fledgling cloud computing business has any paying customers yet. Tesla will also face its own test on July 22, when the carmaker’s latest earnings will be published.
Read more Trump Threatens Fresh Iran Strikes After Declaring Ceasefire ‘Over’
Big Number
12.3%. That is how much Tesla shares have fallen since the start of the year, when they traded around the $438 mark. Meta shares have dropped 8.5% in that same period.
Key Background
Meta’s stock has dropped close to 25% from the all-time high of $796.25 it reached in August. A global tech rout gripped the market last month amid concerns a massive spike in AI spending may not translate to proportional revenue. Companies like Tesla, Nvidia, Intel, AMD and Broadcom suffered losses. However, some optimism remains around the industry. Erste Group upgraded Meta on Tuesday while Wells Fargo raised its price target to $767 on July 2, citing another quarter of robust ad growth. Tesla’s slide, meanwhile, has its own critics, with analysts at Seeking Alpha pointing to four consecutive years of stagnant vehicle sales and growing competition from Chinese electric-vehicle makers as reasons the stock’s valuation looks hard to justify. Tesla shares have fallen roughly 21% since they recorded an all-time high in December.
Read more Kennedy Center Can’t Delay Removing Trump’s Name, Court Says
Further Reading
Global Tech Rout—Nvidia, Tesla, More—Hits Markets: Here’s What Fueled The Selloff (Forbes)
Read more Mitch McConnell’s Health Fuels Longshot Theory He Could Be Replaced By Thomas Massie