Alphabet delivered a strong second-quarter performance, with revenue rising 14% year-on-year to $96.4 billion and earnings per share climbing 22% to $2.31. The standout area was cloud computing, which surged 32% to $13.6 billion. Search and YouTube also posted double-digit growth, with ad revenues up 12% and 13% respectively. However, investor enthusiasm was tempered by a sharp increase in capital expenditures, as Alphabet increased its AI spending by $10bn to $85bn in 2025, driven by aggressive investment in AI infrastructure. While the company remains well-positioned, the spending spree has sparked debate over the timeline for monetizing its AI ambitions.
Alphabet increased its AI spending by $10bn to $85bn in 2025, driven by aggressive investment in AI infrastructure.
Tesla’s second-quarter results were more sobering, with revenue falling 12% year-on-year to $22.5 billion. Deliveries declined to 384,122 vehicles, down from 443,956 a year earlier, and below the 389,000 forecast by analysts. Telsa shares fell 8% in early trading on Thursday. CEO Elon Musk acknowledged the company may face “a few rough quarters” as U.S. EV tax credits expire and trade tensions escalate. Despite the downturn, Tesla touted progress on its robotaxi service in Austin and reaffirmed plans to launch a more affordable model later this year.
The European Central Bank voted unanimously to hold interest rates steady at 2% after seven consecutive cuts, citing stable inflation and uncertainty over US-EU trade relations.
On Thursday, the European Central Bank voted unanimously to hold interest rates steady at 2% after seven consecutive cuts, citing stable inflation and uncertainty over US-EU trade relations. With eurozone inflation at the ECB’s 2% target and growth risks mounting from potential US tariffs, policymakers opted for a cautious pause. The bank emphasised a data-dependent approach going forward, noting that domestic price pressures are easing but external risks remain elevated.
Our specialist's final thought
"Markets now expect one more rate cut later this year, likely in December, depending on how trade negotiations unfold and whether inflation risks shift toward undershooting the target."
Please contact a member of the MHA Wealth team for further guidance on portfolio options.
Contact the teamMHA Wealth is the trading name of MHA Wealth Ltd, a company registered in England (1916615) with registered office at The Pinnacle, 150 Midsummer Boulevard, Milton Keynes, MK9 1LZ.
MHA Wealth is authorised and regulated by the Financial Conduct Authority (FCA) with registered number 143715 and is a member of the London Stock Exchange.
This communication is for general information only, is a marketing communication, and is not intended to be individual investment advice, a recommendation, tax, or legal advice. The views expressed in this article are those of MHA Wealth or its staff and should not be considered as advice or a recommendation to buy, sell or hold a particular investment or product. In particular, the information provided will not address your personal circumstances, objectives, and attitude towards risk.
This information represents our understanding at the time of publication of current law and HM Revenue & Customs practice. Tax assumptions and reliefs depend upon an investor’s particular circumstances and may change if those circumstances or the law change. You are therefore recommended to seek professional regulated advice before taking any action.
MHA Wealth is a member of the MHA group. Further information on the MHA group can be found at https://www.mha.co.uk/about-mha-group.
