Peter Cohan

IBM experienced its worst single-day stock decline in history, plummeting 25.2% and losing $67 billion. This followed a pre-announcement revealing disappointing Q2 results, as enterprise tech spending rapidly shifted. A severe memory chip shortage, driving prices up significantly, forced customers to prioritize hardware like servers and storage. Consequently, IBM saw deferred purchases in software, consulting, and mainframes. CEO Arvind Krishna acknowledged the company's failure to adapt quickly, causing numerous large deals to fall through. The upcoming July 22 earnings report is critical; strong software growth is needed to prevent further losses, as the chip shortage is expected to persist.

Tesla stock has dropped about 7% in 2026. Further declines are possible. Tesla's second quarter results on July 22 are likely to move the shares. Tesla's most recent financial results were mixed. The company also faces fierce competition from rivals like BYD. Tesla is heavily investing in unproven robotaxis and humanoid robots, which does not generate meaningful revenue, according to analysts at TIKR. While Q2 deliveries surpassed forecasts, investor concerns persist over profitability and high capital expenditures. Wall Street considers Tesla slightly over-valued. Twenty nine analysts who cover the stock set an average price target of $400.59. The author does not find it compelling to buy Testa stock but how investors view Tesla as a company will determine whether it is worth buying.

Will Tesla stock rise or fall in the second half of 2026? Come explore the key catalysts, risks, and analyst predictions that help shape Tesla’s future.

The Trump administration has implemented new Section 301 "forced-labor" tariffs, effective July 24, imposing 10% to 12.5% duties on 60 economies, encompassing 99.4% of U.S. imports. These tariffs replace previous ones struck down by the Supreme Court, aiming to be more legally robust while ostensibly combating forced labor. U.S. importers bear the cost, which is largely passed to consumers, potentially costing households $550-$1,500 annually and increasing prices by 0.4%-1.1%. Domestic steel and aluminum producers are expected to benefit, while automakers, retailers, and import-reliant brands like Apple and Nike face significant losses. Countries like China, Japan, and Switzerland face the higher 12.5% rate, while the UK, EU, and India pay 10%. Oil, gas, and fertilizer are exempt. The new regime could generate up to $166 billion annually, but its broad application may still face legal challenges.

Trump’s new Section 301 forced labor tariffs hit 60 countries, raising costs for U.S. importers and consumers while reshaping winners, losers and the legal fight ahead.

Rising AI token prices are creating winners and losers. Chip designers and makers, Google, and enterprise-focused frontier model makers could be good bets.

Microsoft and Meta recently reported earnings, yielding starkly different market reactions. Microsoft's stock surged 9.8%, driven by its booming AI cloud business, Azure, which boasts external paying customers and strong growth. Conversely, Meta's stock dropped 10% as its AI spending is largely internal, lacking immediate external revenue to offset costs, compounded by significant operating losses from its Reality Labs VR division. Microsoft outperformed Meta in earnings, cash flow, and outlook, benefiting from a proven business model where AI capacity is rented to third parties, generating substantial backlog. Analysts see more upside for Microsoft, whose AI investments are already yielding tangible returns, unlike Meta's aspirational AI cloud and costly VR ventures.

Amazon's stock surged 11.5% in pre-market trading after its second-quarter results significantly beat expectations, largely driven by its Amazon Web Services (AWS) division. AWS reported a 37% revenue increase to $42.2 billion and a strong 39.4% operating margin, alongside a massive $496 billion contracted backlog. Overall revenue grew 20% to $200.61 billion, and operating income jumped 43% to $27.5 billion. Despite negative free cash flow and increased capital expenditure guidance, investors were optimistic, viewing the capex as an investment that will yield profitable growth as AWS revenue outpaces spending. Analysts see potential for 40% upside, though some bear cases highlight rising costs. The article notes Nvidia's superior performance in key financial metrics, as it profits from AI chip design while Amazon funds the AI infrastructure.

SpaceX stock plunged 11% pre-market and 49% since June, despite exceeding Q2 revenue and loss forecasts. The drop stems from significantly higher-than-anticipated AI capital expenditures, totaling $15.8 billion. While AI revenue grew 247%, the company failed most market tests for AI cloud providers, particularly regarding operating profit and a clear path from capex to returns. SpaceX's profitable Starlink unit saw average revenue per user decline, while its rocket launch and AI divisions remain cash-burning. Analysts are divided, with some predicting substantial upside based on its integrated platform, while others foresee further declines due to unproven achievements and upcoming insider share sales. Investors are cautious about the lack of financial guidance and the massive AI investment without clear returns.

SpaceX shares dropped 11% after its first public earnings report revealed an unexpected $18.4 billion surge in Q2 capital spending, primarily $15.8 billion for AI infrastructure. Despite beating revenue estimates with $7.81 billion and a lower-than-expected net loss, investors reacted negatively to the massive AI investment. While AI revenue soared 247%, the company recorded a $1.3 billion loss in its AI unit, failing key market tests for profitability and clear returns on AI capex. Its profitable Starlink unit saw ARPU decline, while launch and AI remain loss-making. The lack of financial guidance and upcoming insider share sales add to investor uncertainty, contrasting with successful AI investments by Amazon. Analysts are divided on future prospects.