When Tesla (TSLA) posted deteriorating results, CEO Elon Musk told shareholders to believe in its play in robotics AI. Unfortunately, news on April 30 that the firm cut staff at the EV charging business is troubling news.
Job cuts at the Tesla Supercharger network come at the worst time. The unit is a potential cash flow generator after it added General Motors (GM) and Ford Motor (F). The dismissal of Rebecca Tinucci, who heads the business, weakens the confidence in the EV charging offering.
After markets closed, Advanced Micro Devices (AMD) posted revenue growing by 2.2% Y/Y to $5.47 billion. Although the Client segment revenue increased by 85% Y/Y to $1.4 billion, the gaming unit revenue fell by 48% Y/Y. AMD stock will open around 10% lower this morning.
AMD’s weak sales in gaming suggest that firms like EA (EA) and Take-Two Interactive (TTWO) may struggle to grow in the coming quarters.
Media Stocks Plunge
On Tuesday, Warner Bros. Discovery (WBD) lost 9.69%. Paramount (PARA), whose owner is negotiating a deal with Skydance that does not benefit shareholders, risks re-testing its multiple-bottom price. Shares previously fell to $10.50 before bouncing back.
Investors may prefer Comcast (CMCSA) or Sony (SONY) instead. However, the cost of sports rights and entertainment content is rising. Advertising revenue is falling as customers prefer YouTube and Alphabet’s Google search site.
