Datadog (DDOG) +14.9% on S&P 500 Inclusion, +17% Weekly Surge

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Shares of Datadog surged nearly 15% in a single session and finished the week up around 17% after S&P Dow Jones Indices confirmed DDOG will replace Juniper Networks in the S&P 500 on July 9. This milestone typically triggers automatic inflows as index-tracking funds rebalance, boosting visibility and liquidity. Datadog’s strong revenue growth, profitability, and cloud infrastructure footprint reinforce its appeal in large-cap tech.

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Enovix (ENVX) +9.6% on $60M Share Buyback

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Enovix jumped 9.6% after announcing a $60 million share repurchase program—representing a meaningful commitment to shareholder return at a time of aggressive scaling. The battery tech firm has been under pressure amid capital intensity and production ramp-up costs, but the buyback signals confidence in its long-term trajectory and financial footing. Management emphasized strategic flexibility and a disciplined capital return framework as core to its next phase of growth.

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Big Tech Slips on AI Regulation Surprise

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Major tech stocks fell early last week after a key provision in Trump’s “One Big Beautiful Bill” — a 10-year federal ban on state-level AI regulation — was unexpectedly struck down in the Senate by a 99-1 vote. The provision, backed by White House officials and tech-aligned Republicans, aimed to preempt states from enacting their own AI laws, creating a uniform federal standard favorable to companies like Google, Meta, and Microsoft.
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The sudden policy reversal spooked investors. With the moratorium scrapped, firms now face a fragmented regulatory landscape, potential legal challenges, and rising compliance costs as states pursue their own AI rules. Despite the bill’s broader windfall for tech — including billions in federal contracts for AI infrastructure — the loss of regulatory certainty triggered a pullback in major AI names, with the Nasdaq lagging the broader market midweek.

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Tesla Slides on Sales Miss, Cybertruck Flop, and Musk’s Management Shuffle

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Tesla shares fell nearly -3% this week after a barrage of negative developments raised fresh concerns about demand, execution, and leadership stability. The EV giant reported Q2 global deliveries of 384,122—down 13% YoY and marking its second straight quarterly decline. Analysts now expect full-year deliveries to fall 8% in 2025, reinforcing fears that growth has peaked in the core auto segment.
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Cybertruck sales were a particular disappointment. Tesla lumped the model into its “other” category (with Model S and X), which saw sales drop -19% QoQ and production fall -52% YoY. With just over 10,000 Cybertruck units delivered in Q2—under 3% of total volume—the long-hyped vehicle is increasingly viewed as a commercial failure, dragging down Tesla’s margins and momentum.
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Elon Musk’s decision to personally retake control of U.S. and European sales following the departure of top executive Omead Afshar added to the uncertainty. While senior VP Tom Zhu was handed global manufacturing duties, the shake-up reflects broader strain, particularly in Europe, where Tesla’s registrations plunged -37% YTD amid backlash to Musk’s right-wing political endorsements and repeated political controversies.
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The news compounds investor concerns that Musk’s pivot to robotaxis and AI has yet to deliver tangible results. Despite ambitious autonomy goals, execution risks and brand damage remain dominant themes, with analysts warning that Tesla’s valuation premium is increasingly difficult to justify as sales stagnate and internal friction mounts. Adding to the trouble this weekend was Musk's commitment to start a new political party - a venture many consider a fool's errand and investors consider a major distraction from his CEO duties at Tesla.