Key Takeaways
- Rivian (RIVN) reported a wider-than-expected adjusted loss per share and missed on production and vehicle deliveries for Q2, despite slightly exceeding revenue estimates.
- Amgen (AMGN) delivered a strong Q2 performance, beating analyst expectations on both revenue and adjusted EPS, and subsequently raised its full-year guidance.
- Major U.S. stock indices closed lower on Tuesday, August 5, with the Nasdaq (IXIC) seeing the largest percentage decline, while the Dow Jones Industrial Average (DJIA) and S&P 500 (SPX) also ended in the red.
- Amazon (AMZN) announced it would offer OpenAI's open-weight models on its Bedrock and SageMaker platforms, marking a significant expansion in its AI offerings and ending Microsoft's exclusive cloud resale of these models.
- Tesla's (TSLA) German car sales more than halved in July, plummeting by 55.1% year-over-year, even as the broader German electric vehicle market experienced significant growth.
U.S. equities experienced a mixed close on Tuesday, August 5, with major indices retreating from earlier gains. The Dow Jones Industrial Average (DJIA) concluded the day down 73.61 points (-0.17%) at 44,100.03. The S&P 500 (SPX) fell 31.91 points (-0.50%) to 6,298.03, while the tech-heavy Nasdaq Composite (IXIC) saw the steepest decline, dropping 139.79 points (-0.66%) to 20,913.80.
Rivian's Q2 Performance Falls Short on Deliveries and Production
Electric vehicle manufacturer Rivian (RIVN) reported its second-quarter earnings, revealing a mixed financial picture. The company posted revenue of $1.30 billion, slightly surpassing the estimated $1.28 billion. However, Rivian's adjusted loss per share came in at $0.80, wider than the estimated loss of $0.63. Production figures also disappointed, with 5,979 vehicles produced against an estimated 7,411. Vehicle deliveries totaled 10,661, falling short of the 10,829 expected. The company's cash and cash equivalents also saw a decline, ending the quarter at $4.81 billion compared to an estimated $5.29 billion. Despite these misses, Rivian maintained its full-year vehicle outlook. Analysts had been cautious ahead of the report, citing weak deliveries and broader macro pressures impacting the EV market.
Amgen Exceeds Expectations and Raises Full-Year Outlook
In contrast, biotechnology giant Amgen (AMGN) delivered a robust second-quarter earnings report, outperforming analyst expectations across key metrics. The company reported revenue of $9.18 billion, exceeding the estimated $8.91 billion. Adjusted earnings per share (EPS) reached $6.02, significantly higher than the $5.26 estimated by analysts. Adjusted operating income also surpassed forecasts, coming in at $4.29 billion against an estimated $3.95 billion. Following the strong performance, Amgen raised its full-year revenue guidance to a range of $35 billion to $36 billion, up from the prior $34.3 billion to $35.7 billion. The company also increased its full-year adjusted EPS guidance to $20.20 to $21.30, from the previous $20.00 to $21.20. This positive outlook is partly attributed to strategic acquisitions that have bolstered Amgen's rare disease pipeline.
Amazon Expands AI Offerings with OpenAI Integration
Amazon (AMZN) made a significant announcement in the artificial intelligence space, revealing that it will now offer OpenAI's open-weight models on its Amazon Bedrock and SageMaker platforms for the first time. This move ends Microsoft's (MSFT) exclusive cloud resale of these models and aims to boost Amazon Web Services (AWS) AI tool choice amidst growing rivalry in the sector. AWS reported a 17% increase in revenue for Q2, reaching $30.9 billion. The integration includes OpenAI's new gpt-oss-120b and gpt-oss-20b foundation models, which support advanced reasoning and generative AI applications.
Tesla's German Sales Plummet Amidst Broader EV Growth
Tesla's (TSLA) performance in the German market saw a sharp decline in July. The company's car sales in Germany more than halved, dropping by 55.1% year-over-year. This significant reduction comes despite the overall German electric vehicle market experiencing a robust 58% increase in new battery electric vehicle registrations in July. For the January-July period, Tesla's sales in Germany fell 57.8% to 10,000 units compared to the same period in 2024. This stark contrast highlights increasing competition and potential shifts in consumer preference within Europe's largest auto market, with Chinese automaker BYD seeing a nearly fivefold surge in sales in Germany during the same month.
Other Market Developments
In other news, Williams Companies (WMB), a major pipeline operator, projects that liquid natural gas will constitute over 25% of the U.S. gas market within the next decade. The U.S. also approved significant defense sales to Ukraine, including $99.5 million for transport and consolidation services and $104 million for M777 Howitzer equipment and support. Concerns are rising for Televisa as markets brace for a potential junk downgrade due to subscriber losses. Meanwhile, WestJet is facing an investigation by the Canada Privacy Commissioner regarding a cybersecurity breach.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.