Wall Street's enthusiasm for artificial intelligence is facing a new reality check after Alphabet and Tesla's AI investments started overshadowing the companies' financial growth as their stock dipped.
Combined with a jittery session for markets, influenced by escalating clashes in the Middle East, Tesla fell more than 13%, while Alphabet lost more than 7% as both companies reported negative free cash flow for this quarter. However, both also reported higher revenue than expected. Investors are also preparing for a critical week of earnings from other technology giants.
