Happy Thursday afternoon to everyone on The Street. Here's a snapshot of where markets ended the trading session, plus tomorrow's trade idea delivered to you today.

• 🟥 | US Stocks Fell on Thursday. The S&P 500 and Nasdaq Composite fell by roughly 1% as investors sold off big tech names amid concerns that AI hype may have been overdone.

• 📈 | One Notable Gainer: Viking Therapeutics stock shot 28% higher after it announced plans to advance its experimental weight loss injection into a late-stage trial earlier than expected.

• 📉 | One Notable Decliner: Shares of Ford Motor dove 18% after the automaker missed second-quarter profit and did not lift its full-year profit guidance like its competitor General Motors did.

• 💭 | Tomorrow's Trade: Dream On, Tesla. Scroll down for more.

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YESTERDAY’S POLL RESULTS

Which stock do you think will outperform over the next 12 months?

🟨🟨🟨⬜️⬜️⬜️ Clean Harbors (CLH)

🟩🟩🟩🟩🟩🟩 Taiwan Semiconductor (TSM)

MARKET MOVERS

Molina, Edwards Lifesciences, & Align

MOH (+12%) Molina reaffirmed its full-year guidance for adjusted earnings, and its Q2 results beat expectations on the top and bottom lines (DW)

EW (-31%) Edwards Lifesciences reported Q2 revenue below expectations and cut its full-year guidance on its medical product sales (Barron’s)

ALGN (-8%) Invisalign maker Align Technology released disappointing guidance and quarterly revenue that missed Wall Street estimates (Investing.com)

NOC (+6%) Defense company Northrop Grumman’s second-quarter results beat top and bottom line expectations due to increasing weapons demand (Reuters)

KLAC (+1%) Chip-testing company KLA’s stock saw a slight bounce back from a chip selloff after it released better-than-expected fiscal Q4 results (Barron’s)

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OVERHEARD ON THE STREET

CNBC: Roche’s CEO said its Wegovy rival weight loss drug will be part of a suite of medicines aimed at combatting the effects of obesity.

AP: Stellantis CEO Carlos Tavares pledged action to tackle problems in North America and elsewhere Thursday after reporting a plunge in first-half earnings.

CNN: Warner Bros Discovery and Disney have launched a cross-studio bundle at a 38% discount in hopes of scaling their streaming businesses.

DMR: John Deere says it's laying off salaried workers because of an agriculture downturn and economic challenges.

CNBC: Southwest Airlines plans to get rid of open seating and offer extra legroom, marking the biggest shift in its history.

TOMORROW’S TRADE IDEA, TODAY

Dream On, Tesla

More Than a Car Company

Tesla (TSLA) reported earnings on Tuesday. Just like last quarter, its financials had some implications. The numbers showed that the EV maker potentially has the financials to back its claim of being more than just a car company.

Its battery storage and solar panel business arm showed doubled revenue year-over-year. Its “services and other” business also saw its revenue jump 21%.

However, the gross profit margin for its automotive arm, excluding regulatory credits, came in below expectations. Analysts and investors watch this figure to gauge the company’s profitability. This was largely due to new financing deal offerings, which boosted total deliveries but ultimately hurt margins.

Bringing Investors Back to Earth

Tesla stock is up significantly since the company held its annual meeting last month, but that’s no thanks to Q2 earnings. The gains are largely tied to investor excitement surrounding the company’s AI capabilities and autonomy program.

However, this hype was largely stalled when the company delayed its robotaxi event scheduled for August. The event will now take place in October.

Blurred Lines

The challenge investors are facing is valuing a stock comprised of multiple businesses, all at very different stages of development. Tesla has the makings of a mature company, but Musk keeps touting growth opportunities like robotaxis. Investors are having a difficult time deciphering what type of stock Tesla truly is.

UBS (UBS) recently downgraded the stock to sell, noting that excitement surrounding its unproven business arms is driving the price to a level that’s simply not supported by its fundamentals.

It's up to investors to decide if the fundamentals are enough to support Musk’s lofty dreams.

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ON OUR RADAR

The Guardian: Rupert Murdoch is in a secret legal battle pitching the aging mogul and his heir apparent, Lachlan Murdoch, against his three other children.

BBC: CrowdStrike is facing backlash after giving staff and firms they work with a $10 UberEats voucher to say sorry for a global IT outage.

ABC: California Governor Gavin Newsom issued an executive order for the removal of homeless encampments in California.

Fox Business: According to a Zillow survey, most homeowners are nearly twice as willing to sell their homes if their mortgage rate is 5% or higher.

CS: A recent survey from Charles Schwab shows that almost three in five Americans (58%) are investing today.