Tech Wreck

TLDR

MARKET RECAP → On Wednesday, stocks declined sharply due to disappointing reports from two major tech companies, resulting in the S&P 500 (VOO) and the Nasdaq Composite (QQQ) experiencing their worst session since 2022.

TESLA'S STOCK DIVES ON EARNINGS MISS → Tesla (TSLA) shares tanked 8% after Q2 earnings fell short, with profits down 45% year-over-year and car sales slumping 7%.

ALPHABET'S Q2 EARNINGS: AI AND AD REVENUE → 📊 Alphabet's Q2 earnings beat expectations with $84.74B in revenue, thanks to AI and cloud growth, but rising costs spooked investors​.

Was this email forwarded to you? Sign up for free here.

MARKETS

Today’s S&P 500 Heatmap

Notable Earnings This Week

TODAY’S TOP NEWS

Tesla's Stock Dives on Earnings Miss

📉 Earnings Shock: Tesla’s Q2 earnings disappointed, with profits at $1.48 billion, significantly lower than analysts' expectation of $1.69 billion and down from $2.7 billion a year ago. This led to an 8% drop in premarket trading​.

🚗 Sales Slump: Despite doubling revenue from energy generation and storage, and a 21% rise in services revenue, Tesla couldn't offset a 7% decline in car sales. The company’s slowest growth pace in over three years and multiple price cuts contributed to the earnings miss​.

🛑 Future Concerns: Analysts warned that without new and exciting innovations from Elon Musk, Tesla might face deeper downside pressure. The market reacted to concerns over slower growth and profit margins, which dropped to 17.6%, missing the expected 18.3%​.

TODAY’S TOP NEWS

Alphabet's Q2 Earnings: AI and Ad Revenue

📈 Earnings Beat Expectations: Alphabet reported earnings of $1.89 per share, slightly surpassing the $1.85 forecasted by analysts. Revenue also beat estimates, coming in at $84.74 billion compared to the expected $84.22 billion, reflecting a strong performance despite economic headwinds.

🤖 AI and Cloud Growth: Alphabet's AI initiatives and cloud services were significant revenue drivers. The company highlighted its ongoing investments in AI technology, which contributed to a 15.4% year-over-year revenue increase. However, these advancements also came with increased expenses, slightly dampening investor enthusiasm​.

🛍️ Ad Revenue and Market Reaction: Digital ad sales saw moderate growth, but not enough to excite the market. Despite the earnings beat, Alphabet's stock fell over 3% in premarket trading, as higher operational costs and competitive pressures in the cloud and search sectors raised concerns about future profitability.

BULL VS. BEAR

NOTABLE POSTS

KEEP READING

Pfizer’s gene therapy for rare genetic bleeding disorder succeeds in late-stage trial (CNBC)

CrowdStrike says bug in quality control process led to botched update (CNBC)

AT&T beats estimates for subscriber additions on demand for higher-priced plans (CNBC)

AI startup Cohere cuts staff after $500 million funding round (CNBC)

Mortgage demand drops, as homebuyers wait for lower rates (CNBC)

Delta is finally emerging from chaos. Did it not learn anything from Southwest’s meltdown? (CNN)

A 134-year-old home goods retailer filed for bankruptcy and is closing more than 70 stores (CNN)

China’s leaders have floated the idea of raising the retirement age. It hasn’t gone down well (CNN)

Warner Bros. Discovery notifies NBA it will match Amazon’s $1.8 billion offer to carry league games (CNN)

WHAT WE’RE WATCHING

OUR FAVORITE TOOLS & RESOURCES

  • Quiver Quantitative — Quiver allows retail investors to tap into the power of big data with insights into things like congressional trades as they are disclosed

  • Perplexity — Perplexity AI is an AI-chatbot-powered research and conversational search engine

  • The Market Ear — Live news, analysis and commentary on what moves markets and trading

  • Coinmarketcap.com — Crypto market data

  • Finviz — Financial visualizations

  • Trading Economics — Economic calendar

  • CME FedWatch Tool — Market-implied probabilities of future levels of interest rates 

  • Dataroma — Track stock picks and portfolios of legendary value investors such as Warren Buffett

  • ChatGPT — Large language model-based chatbot powered by generative AI

  • Notion AI — Notion AI is a writing assistant that can help you write, brainstorm, edit, summarize, and more

  • Vimcal — Lightning-fast calendar and AI scheduling assistant

The Bull vs. Bear Merchandise Promotion is a limited time campaign that begins on December 1, 2023 at 12:00 AM ET and ends on the date that there are no more Rewards. This Promotion is available to any registered MoneyLion user who is a legal resident of the 50 United States or the District of Columbia and who has reached the age of majority in their state as of the beginning of the Promotional Period. See terms and conditions here.

This advertising email was sent to you because you have a MoneyLion account. If you would like to unsubscribe, please do so using this link. We respect your right to privacy. Please do not reply to this email with sensitive information, such as an account number, Social Security number, date of birth, bank account information, PIN, password, or Online ID. The security and confidentiality of your personal information is important to us. If you have any questions or want to read more, please visit our Help Center.

MoneyLion and Pathward do not provide, nor do they guarantee, any third-party product, service, information, or recommendation. The third parties providing these products or services are solely responsible for them, as well as all other content on their websites. MoneyLion is not liable for any third party’s failure with regard to those advertised products, services, and benefits. These advertised products and services may not be FDIC insured or bank-guaranteed, and may be subject to a different privacy policy than MoneyLion’s. You should check individual offers, products, and services to become familiar with any applicable restrictions or conditions that may apply. MoneyLion may receive compensation from third parties for referring you to the third party, their products or to their website.

The influencer, creator and other content provided in the MoneyLion App (“Content”) is for informational and entertainment purposes only and should not be construed as legal, tax, investment, financial, or other advice. All Content is intended to be of a general nature, does not address the circumstances of any particular individual or entity, and may not constitute a comprehensive or complete statement of the matters discussed. MoneyLion is not a fiduciary by virtue of any person’s use of or reliance on the Content. You should consult an appropriate professional if you require any legal, tax, investment, financial or other advice. Terms and Conditions for our subscriber referral can be found here.