Google, Tesla Earnings Show Big Tech Winners Evolve

Big Tech earnings are off to a promising start, with Google-parent Alphabet and electric vehicle (EV) maker Tesla—led by billionaire Elon Musk—reporting results that offer insight into the broader sector’s direction, Brian Swint reported for Barron’s Daily.

Google’s flagship search engine is under threat from AI-powered tools like ChatGPT. (Photo: Google Facebook)

Both companies beat Wall Street expectations, although their stocks have struggled this year.

Their core businesses face mounting challenges—Google’s flagship search engine is under threat from AI-powered tools like ChatGPT, while Tesla is grappling with reduced green subsidies and aggressive competition from Chinese EV makers.

Still, for Big Tech, shrinking core businesses don’t spell the end. U.S. tech giants have historically thrived by reinventing themselves.

Apple, however, tells a different story. The iPhone maker is facing criticism for failing to innovate or lead in the AI space. Its shares are down 15% this year.

Yet it may be premature to count Apple out. While valuations across the sector remain high after years of growth, future success will hinge on who can adapt and thrive in the fast-moving, AI-driven economy.