Spend too much on AI and get punished. Spend too little and get punished harder. That's the week Alphabet Inc. (NASDAQ: GOOGL) and Tesla, Inc. (NASDAQ: TSLA) just had. Alphabet dropped roughly 7% on fears it's spending too much on AI infrastructure. Tesla fell even harder on fears it isn't spending enough.
Rob Spivey, director of research at Altimetry, sees that contradiction as the whole story. The market can't decide what it's angry about, which usually means it isn't thinking clearly about either company.
