On this episode of Stock Movers:
- Alphabet (GOOG) is trending higher after yesterday's earnings beat. Alphabet said demand for artificial intelligence products boosted quarterly sales, and now requires an extreme increase in capital spending. CEO Sundar Pichai explained that the investments are necessary in order to keep up with customer needs, saying "Our AI infrastructure investments are crucial to meeting the growth in demand from cloud customers". Chipmakers Nvidia (NVDA) and Broadcom (AVGO) are rising on this news.
- Tesla (TSLA) is lower in premarket trading after seeing a decline yesterday from its earnings miss. CEO Elon Musk did warn of difficult times ahead for Tesla after one of the automaker’s worst quarters in over a decade. Musk said Tesla will be in a transition period for the next year or more, losing electric vehicle incentives in the US and needing time to roll out autonomous vehicles.
- IBM (IBM) is lower this morning after it reported weaker-than-expected sales in its software segment, with second-quarter software unit sales increasing 10% to $7.39 billion. The company's management has heralded software and services as the path to rejuvenation, with software now more than 40% of the company's annual revenue, and bookings for the AI business have exceeded $7.5 billion since mid-2023.
- T-Mobile (TMUS) is higher this morning as it reported more new subscribers than analysts were expecting in the second quarter, with 830,000 new monthly phone customers. T-Mobile's CEO Mike Sievert said the company's satellite-based texting and data service will help attract and retain customers in the long term, and the company raised its full-year guidance due to its joint venture with KKR & Co.
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