Teslathe automotive company Elon Muskwill report its second-quarter earnings on Tuesday, following a recent rally in its share price, boosted by better-than-expected quarterly delivery figures.
Wall Street analysts expect Tesla to report revenue close to that of the second quarter of last year, when it had sales of $24.93 billion, according to estimates compiled by Visible Alpha.
They also project that restructuring and research and development costs will be higher than last year, leading analysts to estimate that Tesla’s net income will be $1.73 billion, down from $2.7 billion a year earlier.
Before the long-awaited hour, which marks the beginning of the presentation of the results of The Magnificent Seven of Wall StreetTesla shares are still up 5.5% from the previous day, and are already up 1% before the market opens.
Things to follow
Investors will be watching for updates on the debut event for Tesla’s autonomous robotaxis. CEO Elon Musk mentioned that the event has been delayed from early August, without providing a new date.
Similarly, better-than-expected second-quarter delivery numbers have helped fuel a significant rally in the company’s stock. While deliveries were down on last year’s second quarter, the numbers reflect a strong quarter for much of the electric vehicle (EV) market.
Stock Outlook:
- After a recent rally that erased Tesla’s losses in the first half of the year, shares fell late last week and were down about 4% so far this year, trading at $239.20 at Friday’s close.
- Tesla shares rose more than 5% on Monday ahead of the earnings report as Musk said the company will have humanoid robots in production for internal use by 2025.
Alphabet (GOOGL)
Google’s parent company, Alphabetis scheduled to report its second-quarter earnings after the market closes on Tuesday. Investors will be looking for continued growth in the cloud and updates on artificial intelligence (AI) initiatives.
Alphabet is projected to report revenue of $84.3 billion, according to estimates from Visible Alpha, which would represent a 13% increase compared with the same period last year.
Net income is expected to be $23 billion, or $1.85 per share, up from the second quarter of 2023.
Key Metric: Cloud Growth
- Investors will likely be looking to Google Cloud for continued growth, as revenue from the cloud segment could help ease investor concerns about Big Tech’s increased spending on AI.
- Analysts expect cloud revenue of $10.22 billion, according to consensus estimates from Visible Alpha, which would represent growth from the prior quarter and the same period last year.
Outlook for stocks
Alphabet shares have gained nearly 30% since the start of the year, trading at $181.04. In premarket trading, Google shares are up 0.3%. With the entire session ahead of them, investors will be hoping that the nearly 30% gains of the past few months will materialize and continue.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
