Alphabet, Tesla earnings set a nervous tone: all eyes on Meta, Amazon and Microsoft

Artificial intelligence has become the biggest growth story in global technology, but this week's earnings from Alphabet and Tesla have reminded investors that building the infrastructure behind that boom is becoming increasingly expensive. And, investors are not okay with this. While both companies reported robust revenue growth and highlighted expanding demand for AI-related products and services, their results also reinforced concerns that the industry's largest players are spending at an unprecedented pace, squeezing free cash flow and raising questions about when those investments will begin generating meaningful financial returns. The concern was evident immediately after the results. Alphabet shares fell 7.1% on Thursday, while Tesla plunged 14.5%, marking the electric vehicle maker's worst single-day decline since March 2025. The sharp...