Amidst a sea of drama, tech giants prepare to release their earnings reports this week.
Google, in particular, has been a hive of activity, with protests and restructuring within the finance department. Additionally, Google terminated 28 employees following labor condition protests and controversy surrounding the company’s contract with the Israeli government.
Tesla, meanwhile, has announced mass layoffs, price cuts, and a Cybertruck recall. The company’s stock has plummeted 43% this year, and analysts predict a decline in sales.
Meta’s efforts to implement its new AI assistant, Meta AI, hit a snag when it was found to have joined private groups and made false claims. Despite a strong start to the year, Meta’s stock slipped last week due to concerns about its Reality Labs division and the upcoming election season.
Alphabet, Google’s parent company, is expected to draw significant attention during earnings calls. CFO Ruth Porat’s announcement of a finance department restructuring, including layoffs, underscores the company’s shift towards AI. Additionally, Alphabet CEO Sundar Pichai consolidated the company’s AI teams under the Google DeepMind umbrella.
Microsoft, despite narrowly avoiding an antitrust probe into its relationship with OpenAI, has also invested heavily in AI. However, the company’s stock has lagged behind its tech peers, and analysts anticipate potential weakness in its customer base.
As tech behemoths navigate these challenges, Wall Street remains jittery, with the tech-heavy Nasdaq Composite experiencing a steep decline last week. Investors are closely monitoring earnings reports, with analysts projecting revenue growth for Alphabet and Microsoft but cautioning about potential weakness in Tesla and Meta.
