Tesla, Netflix earnings; Apple reportedly tests AI tools - what's moving markets
Investing.com — Tesla (NASDAQ:TSLA) and Netflix (NASDAQ:NFLX) shares fall, weighing on the Nasdaq, following the latest earnings from the big-name tech brands. Meanwhile, the parade of quarterly results in the U.S. marches on, and Apple (NASDAQ:AAPL) reportedly becomes the latest contender in the race to develop generative artificial intelligence (AI) technology.
1. Tesla margins fall; Netflix revenue disappoints
Shares in Tesla and Netflix both dropped in premarket trading as investors digested mixed second-quarter results from the electric carmaker and the streaming giant.
For Tesla, attention centered around recent price cuts to boost volumes and combat intensifying competition in the electric vehicle market. The decision pushed revenues up to a record high of $24.93 billion during the three-month period.
But the move also weighed on its gross profit margin from automotive operations, excluding the impact of regulatory credits, which dropped to 18.2% from 18.8% in the first quarter and 26.2% last year. Although that decline was not as large as many analysts had expected, Tesla's stock still slumped after chief executive Elon Musk later suggested that more price reductions could be coming this year.
Meanwhile, Netflix's crackdown on password sharing between users appears to be working, with the company adding 5.9 million subscribers in the quarter, far above Wall Street estimates. It also told analysts that the number of canceled accounts was «low.»
However, this trend was overshadowed by softer-than-anticipated revenue of $8.2B. Netflix's third-quarter projection of $8.5B for the top-line figure missed forecasts as well. Shares in Netflix tumbled as a result.
2. Nasdaq futures slump
Futures for the Nasdaq pointed
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