The recent slowdown in tech stocks will be tested this week with earnings from Alphabet Inc. and Tesla.
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Google parent Alphabet is set to report its second-quarter earnings after the close on Tuesday. Investors will likely look for cloud growth and updates on artificial intelligence goals.
According to estimates from Visible Alpha, the tech giant is expected to report revenue of $84.3 billion, a 13% rise over the year. Net income is expected to be $23 billion, or $1.85 per share, higher than a year ago.
Cloud revenue will be necessary for analysts with expectations for cloud revenue of $10.22 billion, according to consensus estimates from Visible Alpha.
The company may also update investors on projects like its AI assistants, Gemini Live, and Project Astra. Those products could help Alphabet compete with the Microsoft-backed OpenAI. The company may also provide insights into how AI Overview is changing Google Search.
Google is also in talks with cybersecurity startup Wiz to acquire it in a deal worth roughly $23 billion. If that deal goes through, it would be the largest acquisition Google has ever made. Another acquisition was also hinted at with HubSpot.
Tesla releases earnings this week, and investors will see the latest financials after a recent slump in EV sales. Tesla shares fell last week after a strong rally, erasing its year-to-date gains. However, the stock is up 60% in the previous three months. If earnings are poor, the stock could be punished after recently postponing its robotaxi unveiling from August to October.
According to Visible Alpha, analysts have forecast that Tesla will report revenue of $24.93 billion in the second quarter of last year. Restructuring and research and development costs are also projected to be higher at the electric vehicle maker than the previous year, leading analysts to estimate a net income of $1.73 billion, down from $2.7 billion a year ago.
