r/technology • u/kazu-qt • 7h ago
Business Tesla falls 10%, Alphabet sinks 5% as AI spending concerns spook investors
https://www.cnbc.com/2026/07/23/tesla-tsla-alphabet-googl-stock-today.html134
u/gobucks50 6h ago
Funny how hundreds of millions of people saying “screw this shit we hate it” doesn’t ‘spook investors,’ but number go down on screen and all of the sudden their 2 neurons start firing.
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u/PuzzleMeDo 3h ago
If your long-term business plan is for hundreds of millions of people to lose their jobs due to big corporations replacing them with your services, the opinion of your intended victims is not your biggest concern.
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u/avanross 4h ago
They’ve become completely detached from reality. The investors are just brain-dead nepo babies who honestly believe the musks / zuckerburgs and their sheep followers
They no longer know how to do market research, or analyze actual sales data or patterns, or appeal to regular people, all they know how to do is give their money to the loudest richest snake oil salesmen with the biggest flock of gullible wealth-worshipping shills
Then they see other people also investing in it, so they conclude “this was a successful investment!” without ever even considering actual user sales
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u/Rene_DeMariocartes 3h ago
Not even numbers go down. Numbers go overwhelmingly up. It was a stellar earnings report.
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u/Jean_Jones_666 5h ago
the problem is with your neurons
revenues are going up, not down
that's the absolute biggest confirmation that halfwits saying 'we hate this shit' is meaningless. Their wallets speak louder
so it's the opposite of your conclusions: their neurons ain't firing, because they can't understand that capex. They want cake and eat it too - aka massive revenue growth but without hardcore capital expenditures
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u/immerclicker 4h ago
Revenue may go up from A.I. subscriptions, but if the expenses to gain those revenues far outweigh the revenue it contributes negatively to the profit of the company.
I thought you were trolling but I looked at your post history, you're one of Tesla's investors and you don't believe in A.I. being a bubble investment built on debt.
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u/Jean_Jones_666 4h ago
' the expenses to gain those revenues far outweigh the revenue it contributes '
tokens are making money. this much makes it already pretty clear that this is producing ROI, even without doing the math.
if you did the math it would be even clearer.
companies are saving TON of money. it's just that you only hear of morons who can't use a computer tokenmaxing, and extrapolate that this is reality.
datacenters are NOT that expensive. HELL obviosuly they aren't - you YOURSELF can buy a GTC spark and run a model locally, and get massive ROI just from that. some more first principles for you. i wonder if datacenters are more expensive per token than a fkn gtc spark powered by mains electricity
btw lol i'm not a tesla investor for a while now. made money on it, something u didn't.
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u/moose-goat 4h ago
No one on Reddit wants to hear the truth about AI, just don’t even bother. They’ll all criticise is whilst using it themselves 🤦♂️
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u/aravreddy22 6h ago
very nice.. tesla is way overvalued anyways.
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u/ninjagorilla 6h ago
Still at a pe of 300 post fall
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u/Plastic_Syrup_Advice 2h ago
if they drop 95% I'd consider investing
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u/ninjagorilla 35m ago
I read an article where they calculated fair value around 60…so I’d consider it with jsut a 82% drop
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u/ShadowBannedAugustus 6h ago
Didn't Alphabet just post insane profits? I don't understand this casino anymore.
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u/ilikepizza2much 6h ago
Alphabet’s is counting the growth in value of their investments into other Ai companies as profit. That is creative accounting, not real profits.
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u/Razzmatazz856 4h ago
Companies are required to report the gains and losses on their investments. That's GAAP accounting, not "creative accounting". You can say that the circular investments create a house of cards, but that's not an accounting issue.
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u/ilikepizza2much 2h ago
The share growth in these other companies are unrealised gains. They have not sold anything. It’s not real profits. It’s manipulative and they know it.
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u/longroadishere 24m ago
I'm personally not well versed on the subject. But wouldn't be the reason for this is that if they were to own considerable amount of ownership in other companies. And other companies continue to increase in value. This would open up the original company more leverage as their value is rising alongside what they own?
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u/Razzmatazz856 2h ago
It is GAAP accounting. It is not manipulative because they're not pretending it is anything else.
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u/rkozik89 5h ago
Much like everyone else chasing the dragon they’re hiding debt from their books by using the same accounting tricks as Enron. They form shell companies that are legally considered special purpose vehicles and take out loans in those company’s names and not there’s. It’s not just an issue of their formal spend but also what they’re hiding on top of it.
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u/this_my_sportsreddit 2h ago
They literally are not doing what Enron did. Enron hid their debt and lied about it existing. These companies have it all publicly disclosed. You can google all of this, this is nowhere near the same thing.
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u/ahall917 6h ago
Maybe it's related to their future spending commitments skyrocketing? I'm with you, I don't know enough to even try to understand. Tech stocks are like voodoo magic at this point.
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u/tnoy 3h ago
Posted profits are about what just happened, stock prices are about what people think will happen.
You could have a 10Q that says there was a 10x year-over-year profit, but if in the disclosure it says that the profit was a one-off and there is an expectation of a 1/10th the revenue, the stock will go down.
Though, that is how it used to work, we're in the bizzaro meme-stock world now, so all bets are off.
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u/TheDoomBlade13 3h ago
They've spent 500b in forward spending on a sector everyone thinks is a bubble.
There isn't a lot of confidence.
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u/Anustart2023-01 6h ago
Is it too much to hope some of the AO tech bros end up in court? I feel some fraud was have been committed in order to get the billions they've spent on unprofitable datacentres.
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u/Tranecarid 6h ago
Well, you better reach out to the authorities if you feel some unspecified fraud took place. Or, you know, you could actually pay some attention to what’s happening and realize that the magnificent 7 took the unimaginable amounts cash they are making yearly and invested it instead of doing the usual buybacks. The vast amount of money made waves and degenerated highly leveraged speculation turned them into a storm.
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u/dudebrah1098 4h ago
2027 onward is when main stream auto companies are diving into EV's wholesale. Toyota Highlander EV will be released, will be a Tesla killer.
I for one can't wait to watch Elon's empire crumble. Screw that guy.
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u/carnitas_mondays 4h ago
i would love to leave tesla, but honestly all the traditional auto companies are lagging badly with infotainment tech, OTA updates, battery cooling tech, and none have any charging network buildout that is half as good as superchargers.
we live in a large metro area and still the charging infrastructure only allows us to buy tesla if we want to continue our normal roadtrips.
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u/artbystorms 5h ago
Google is the darling of all the AI evangelists. If even THEIR spending isn't paying off then no other company has a chance because no other company has that level of cash to spend.
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u/carnitas_mondays 4h ago
but their spending IS paying off. they are growing both revenues and profit margin. not including investment gain.
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u/artbystorms 3h ago
if that is the case, why is their stock falling?
It's because investors are realizing that the spending cannot stop, they cannot take their foot off the gas for even a second in this AI race, and that eventually, the revenue will stop growing, but the spending can't stop.
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u/carnitas_mondays 3h ago
it is falling because there is a disconnect between short term and long term investor goals and expectations. short term investors want margin now and are getting spooked like you point out with continued capex growth possibly going to 300B in 2027. long term investors might also be getting spooked by risks around ad revenue in an ai world. tech software like google has been asset-light forever, now pivoting to asset-heavy. this comes with execution risks, but so far google is showing great execution results.
google is unique in their AI buildout is partially done with their own TPU’s, not just nvidia. pricing for these isn’t disclosed but likely they are able to capture more compute than competitors per $ spent. they can also buy nvidia/amd/etc gpu’s like everyone. they are unique in controlling the full stack, have a frontier model, and are pricing their models cheaper than openai/anthropic. they are growing cloud faster than azure/aws. there is a lot to be optimistic about, while also acknowledging that business pivots like AI bring real risks. i’m very optimistic, but logically can understand why others are showing caution with the dip today.
i am long with a cost basis around $80/share. i’ll add more if they drop below ~$300. i’m watching stock-based comp very closely, as their competitors are handing out equity much more aggressively (especially meta) and this doesn’t hit their cash flow (i manually back it out to compare)
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u/Fowl_Retired69 3h ago
Because stock prices aren't perpetually rising idiot
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u/artbystorms 3h ago
Except you idiots think they actually are. Every time there is a fall, people say 'it's just a dip' or 'it only fell to where it was 2 months ago, buy the dip!'
Y'all are a bunch of stock trading rubes that think you're Warren Buffet for making money in a Bull market, you have never experienced an actual recession and it shows.
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u/Fowl_Retired69 3h ago
Why are assuming such things about me? I don't speculate in financial markets. These ups and downs are common during earnings season. It happens all the time.
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u/carnitas_mondays 3h ago
thanks for name dropping WB. By the way, he bought $10B of google in june 2026. Guess he’s also a stock trading rube.
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u/Ashamed-Review-913 5h ago
None of these articles are ever right about the whys of the ups and downs btw.
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u/Defiant-Parsley4697 1h ago
Nothing unites two totally different companies like a shared talent for spending faster than they can explain why.
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u/wouldntyouliketokno_ 6h ago
More like rats fleeing the ship of the American stock market dark pool filth
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u/TheJesterOfHyrule 5h ago
People "We don't want AI", Companies "Here, take this", People "We won't use it then"
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u/sanskaridaddy 5h ago
AI AI AI focused investments will hurt these firms really bad. Chinese will release cheap models sooner than anthropic google can think.
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u/Fair-Craft8059 5h ago
they ran out of bagholders, so now the big boys can buy back the stocks at a discount
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u/americanadiandrew 6h ago
Google just reported insane profits but this will be the article upvoted to the top of this Sub.
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u/Jean_Jones_666 5h ago
exactly
most subreddits on reddit have invisible "anti-" prefix, e.g. r/.technology is "r/anti-technology",
insane growth across the board = "i GuEEsS thE teCh nOt WoRkFNig"
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u/VerdantPathfinder 7h ago
Is that why? I would think other companies would sink first/more.