The second-quarter earnings season is heating up, and two "Magnificent Seven" constituents — namely Tesla (TSLA) and Alphabet (GOOGL) — will release their reports this week. The earnings season for tech companies began on a sour note earlier this month, as Netflix (NFLX) disappointed with its guidance, pulling NFLX stock down to a 52-week low.
These latest Q2 earnings reports are coming at a time when the rally in artificial intelligence (AI) stocks has shown signs of weariness, with chip and memory companies looking particularly weak. Specifically, TSLA stock is down 16% so far this year, making it one of the worst-performing "Magnificent Seven" stocks alongside Microsoft (MSFT).