Both Alphabet and Tesla posted negative quarterly free cash flow, but their profitability, balance sheets and stock swings after earnings show quite different dangers.
Tesla (TSLA) and Alphabet (GOOGL) got the same tough message from Wall Street to start: Investors are no longer prepared to pay for artificial intelligence spending without asking about its cash flow impact.
But their stocks tell two distinct tales presently.
Shares of Tesla sank more than 14% on July 23, while Alphabet slid almost 7% after both companies disclosed negative quarterly free cash flow and detailed plans for increased spending. The selloff also dragged on the broader market, as the Magnificent Seven account for over 30% of the S&P 500's value.
But by July 27, Alphabet was up about 3%, trading near $328.60 in late-morning trading. Tesla was last down about 1.4% at $308.76.
#negative
Tesla (TSLA) and Alphabet (GOOGL) got the same tough message from Wall Street to start: Investors are no longer prepared to pay for artificial intelligence spending without asking about its cash flow impact.
But their stocks tell two distinct tales presently.
Shares of Tesla sank more than 14% on July 23, while Alphabet slid almost 7% after both companies disclosed negative quarterly free cash flow and detailed plans for increased spending. The selloff also dragged on the broader market, as the Magnificent Seven account for over 30% of the S&P 500's value.
But by July 27, Alphabet was up about 3%, trading near $328.60 in late-morning trading. Tesla was last down about 1.4% at $308.76.
#negative
2 months ago
