Big tech names among trending stocks this week as AI frenzy hits roadblock

The U.S. market had a volatile week amid a reversal in fortunes for technology stocks and big developments around the U.S. election race. The S&P 500 (SP500) closed the five-day trading period down -1.55%.

The drop in Wall Street’s benchmark index was driven by a selloff in big tech, with S&P 500 recording its worst day on Wednesday since December 2022. The tech-heavy Nasdaq Composite (COMP:IND) declined 3.38% this week, and despite a rebound at the end, most big-name tech stocks were in the red at the close of trade Friday.

Here were some of the trending stocks this week:

Alphabet (GOOG) (GOOGL) slid 7.5% due in part to negative investor reaction towards earnings. The tech giant reported higher-than-expected spending in AI as competition mounts, even though revenues and profits topped expectations.

Tesla (TSLA) dropped 10.03% for the week on a disappointing earnings call and a profit miss. Elon Musk pushed back the Robotaxi project further and did not offer any new information on a mass market model. Tesla also warned of margin pressures on its Cybertruck and Model 3 from tariffs on raw materials and finished goods.

Crowdstrike (CRWD) continued to hurt from the outage last Friday, dropping around 9.6% in the latest week. Its faulty update affected millions of Microsoft (MSFT) Windows devices globally and triggered a wild week for the stock, which fell 23.1% over June 19 and 22. Seeking Alpha analysts have mixed reactions, with some seeing this decline as a buying opportunity, while others warn to steer clear.

Ford Motor (F) plunged 19% this week, as Q2 results and the lingering concerns over warranty expenses spooked investors. Warranty costs and losses tied to its EV division hit the automaker’s profitability in the latest quarter, although free cash flow and its ICE segment remained strong. Ford (F) continued to be the most-recalled automaker for the third straight year.

Enphase Energy (ENPH) was up nearly 10% as the firm reported the healthiest Q3 bookings in a year amid ongoing demand woes, even though revenues and adjusted profits fell short of analysts’ expectations. The energy tech company expects “incremental improvement in our U.S. business and a seasonal slowdown in Europe.”

ServiceNow (NOW) increased around 9.6% this week with its Q2 results, including momentum stemming from its generative AI packages. ServiceNow CEO Bill McDermott highlighted the growing number of deals with corporate customers utilizing their Gen-AI products, during Wednesday’s earnings call.

DexCom (DXCM) tumbled nearly 43%, hitting the lowest level in more than four years on Friday after the medical device maker slashed its full-year revenue outlook along with its Q2 2024 financials, drawing downgrades on Wall Street. The maker of continuous glucose monitoring devices beat Street estimates with its Q2 earnings, but its revenue missed forecasts and its revised guidance fell well short of analysts’ projections.

More on this week’s trending stocks:

• Google: Almost The Cheapest Magnificent 7 Stock, Double-Digit Growth Expected
• Google: Never Bet Against The King Of Search
• Why Alphabet (Google) Remains A Buy Due To Its AI Potential
• Elon Musk’s xAI is now training its Grok AI chatbot based on X posts
• Nvidia dethrones Tesla on IBKR’s most-active list, CrowdStrike in at third after outage