Tesla, Intel, Google All Dropped After Earnings - Will Microsoft, Amazon, Meta Follow?

Top technology stocks plunged after releasing their second-quarter results.

Tesla (NASDAQ: TSLA ) fell to $306, its lowest level since August 4 and down 39% from its all-time high.

The stock retreated after its earnings per share missed analysts’ estimates and after the company recorded negative free cash flow.

Intel, Google, and Tesla Stocks Dropped After Earnings Intel (NASDAQ: INTC ) retreated to $92.32, even after the company published strong financial results.

Its revenue jumped at the fastest rate in 15 years, reaching $16.1 billion.

Its earnings-per-share jumped to 42 cents, higher than the expected 21 cents as it continues riding the AI agent news.

Alphabet (NASDAQ: GOOG ) gapped lower and reached a low of $319, its lowest level since April this year.

It has dropped by 21% from its highest point this year as it boosted its capital expenditure to $205 billion.

Focus now shifts to the upcoming big-tech earnings by top companies like Microsoft (NASDAQ: MSFT ), Amazon (NASDAQ: AMZN ), and Meta Platforms (NASDAQ: META ).

Microsoft stock has already plunged by over 30% from its all-time high.

Similarly, Meta and Amazon have dropped by 25% and 18% from their all-time highs, erasing billions of dollars in value.

Meta Platforms, Microsoft, and Amazon to Publish Earnings These companies will publish their financial results next week, with analysts expecting their growth to continue. data shows that analysts expect Meta Platforms’ revenue to come in at $60 billion, up by 26% YoY.

Its EPS is expected to rise modestly to $7.22.

Microsoft’s revenue is expected to jump by 14.70% to $87.67, with its EPS expected to jump from $3.65 to $4.24.

Amazon, on the other hand, is expected to report revenue of $195.97 billion, up by 17% YoY.

These companies, judging by their past, will likely report strong revenue and earnings numbers next week.

They will likely boost their forward guidance for the current quarter and the year.

Still, their stocks will mostly react to capital spending plans.

Microsoft predicted it would spend $190 billion this year, while Meta and Amazon planned to spend $145 billion and $200 billion, respectively.

A significant increase in this guidance will likely push their stocks lower, as investors remain concerned about returns on investment.

Meta Platforms will be watched closely because of the recent reports on its data center business.

Mark Zuckerberg will likely provide more color on this business, which may boost its stock.

The options market is pricing in increased volatility for the three companies.

For Microsoft, the at-the-money straddle for the July 31 expiry implies a move of about 8%.

Amazon’s predicted move is about 6.4%, while Meta is expected to move by about 7.9%.

Meta has exceeded the implied range in six of the past eight earnings reports.

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