This week in tech: Microsoft's victory lap; Tesla and Netflix tumble
By Louis Juricic and Sarina Isaacs
Investing.com — Here is your weekly Pro Recap on the biggest headlines out of tech this week: Tesla and Netflix drop on Q2, but analysts are bullish; Taiwan Semiconductor slides on a warning; and Wall Street cheers Microsoft's newly unveiled pricing.
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Tesla (NASDAQ:TSLA) shares took a dive this past week as investors fretted over the EV maker's 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.
As far as the headline numbers go, Tesla reported EPS of $0.91 on revenue of $24.93 billion. Analysts polled by Investing.com anticipated EPS of $0.79 cents on revenue of $24.29B.
The price cuts helped the company boost its installed base and rake in new customers, with deliveries surging 86% to 466,140, marking a record quarter for the company.
Wedbush called the move a «smart strategy,» saying after the report that the price cuts «have been in a homerun success in China, Europe, and the US… In a nutshell, we view Tesla where Apple was in the 2008/2009 period as Cupertino was just starting to monetize its services and golden ecosystem with the
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