Good morning. Investors are getting jittery about AI spending again.
Tesla shares closed down 15% and Alphabet stock closed down 7% yesterday after both companies indicated that their eye-watering, AI-driven capital expenditure commitments would exceed initial estimates through the rest of the year.
Not that their top executives didn’t try to calm fears. “I’m confident that all the things that we’re investing in will yield incredible returns,” Tesla CEO Elon Musk told investors yesterday.
(They didn’t bite: It was the electric automaker’s worst market day in more than a year, with a $215 billion shave to its market cap.)
Expect the pressure to continue, even as revenue predictions look up. To channel Dickens: Great expectations.
