Alphabet and Tesla have experienced significant stock declines following their latest earnings reports, which revealed substantial capital expenditure plans that alarmed investors. Alphabet's revenue exceeded expectations, but its projected capital expenditure could reach $205 billion by 2026, driven by the need to expand capacity to meet rising demand, according to CFO Anat Ashkenazi.
Similarly, Tesla reported a negative free cash flow as it shifts focus from vehicle sales to ambitious projects like driverless robotaxis and humanoid robots, with capital expenditures soaring by 142%. This trend of scrutinizing spending is expected to continue as other tech giants, including Meta, Microsoft, Amazon, and Apple, prepare to announce their earnings in the coming days.
In Europe, Unicredit reported a net profit of 2.9 billion euros for the second quarter, exceeding forecasts, while CEO Andrea Orcel expressed optimism about the bank's acquisition of Commerzbank shares. Additionally, crude oil prices are rising due to geopolitical tensions, particularly threats from U.S. President Donald Trump regarding Iranian infrastructure, which could impact global oil supply.
The European Central Bank is also anticipated to maintain interest rates amid these volatile conditions