Alphabet, Tesla Fall on Earnings. IBM Rises on Cost-Saving Initiatives

Today's biggest winners and losers in the stock market, a look at the notable movers:

On this episode of Stock Movers:
- Alphabet (GOOGL) reported second-quarter cloud revenue that far surpassed Wall Street’s expectations and strong gains in users of its Gemini artificial intelligence system, offering fresh evidence that the company’s massive AI investments are beginning to pay off. The Google parent said cloud sales totaled $24.77 billion for the quarter ended June 30, a jump of 82% over the same period last year. That was better than the $22.46 billion that analysts expected, according to data compiled by Bloomberg. Monthly active users of its Gemini app reached 950 million, well above estimates of 920 million. Shares Fall 2% After 2Q Earnings Report

- Tesla's (TSLA) second-quarter earnings fell short of Wall Street's estimates, with adjusted earnings per share of 33 cents. The company reported negative free cash flow of $1.09 billion and operating costs that surged 47% to $4.35 billion. Revenue was $28.2 billion in the quarter, beating market expectations, with subscriptions for Full Self-Driving software rising to nearly 1.5 million. Shares fell 2.8%

- International Business Machines (IBM) cut its full-year sales outlook, including for its software unit, after reporting a dip in demand for its mainframe business. Revenue will increase 4% to 5% this year, down from a prior outlook of more than 5%, and software unit annual sales will gain 6% to 8%. IBM will accelerate cost-saving initiatives and continues to expect an additional $1 billion in free cash flow this year through reducing third-party tech spending and administrative costs. The shares rose about 3%

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