Alphabet and Tesla Report AI Spending; Shares Fall 4% and 3%

Published on 7/23/2026 · Source: cnbc.com

AI Summary

Summarized by AI from the source below

Alphabet (GOOGL) and Tesla (TSLA) began tech earnings season with a focus on AI spending. Both companies reported negative free cash flow for the latest quarter while forecasting significant capital expenditures, with Alphabet projecting $195 billion to $205 billion for 2023. Despite better-than-expected revenue, Tesla shares fell 4% and Alphabet’s shares dropped more than 3% in after-hours trading. The announcements may signal caution for the tech industry ahead of upcoming reports from other major companies, including Meta and Microsoft, which could impact overall market sentiment.

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About Alphabet Inc. (Class A) (GOOGL)

Alphabet is the parent of Google, generating most of its revenue from search and advertising while expanding in cloud computing, YouTube, and AI. Class A shares (GOOGL) carry voting rights.

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