Analysts see 11% upside for Tesla and 60% for Alphabet despite post-earnings declines in both stocks.
Tesla and Alphabet reported stronger-than-expected quarterly results but saw shares decline. Tesla’s revenue rose 25.52% year-over-year to $28.24 billion, while Alphabet’s revenue grew 24.23% to $119.80 billion. Both companies missed key metrics, with Tesla’s EPS falling 38.51% below estimates and Alphabet’s $44.92 billion in capex raising concerns.
Tesla’s operating margin collapsed to 1.4%, and free cash flow turned negative at $1.09 billion. Alphabet’s Cloud growth accelerated to 82%, but a suspended buyback and $70 billion in equity and debt raised weighed on sentiment. Analysts set a price target of $413.49 for Tesla, implying 10.56% upside, and $545.95 for Alphabet, suggesting 59.68% potential gain.
Shares of Tesla fell 5.18% for the week, while Alphabet dropped 7.64% despite strong earnings. The divergence in price targets reflects Tesla’s high valuation and margin pressures versus Alphabet’s lower P/E and growth prospects.