Alphabet and Tesla lost market value this week
Alphabet and Tesla saw significant losses in market value this week. Alphabet’s stock fell 8% despite beating revenue expectations, due to high capital spending of nearly $45 billion.
The company’s free cash flow turned negative for the first time as a public company. Tesla’s stock lost 18% after missing earnings expectations and seeing its operating margin fall.
Nvidia, a supplier to these tech giants, added roughly $100 billion in market value, rising 2%. The contrast between the losers and winners highlights the issue of who pays for the AI build-out.
The total loss for Alphabet and Tesla was about $330 billion and $250 billion, respectively.