Two Blowout Quarters, Two Selloffs: What Tesla and Alphabet Reveal About our Price Target
Two Blowout Quarters, Two Selloffs: What Tesla and Alphabet Reveal About our Price Target
Vandita JadejaThu, July 23, 2026 at 5:00 PM UTC
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Tesla's nosebleed 344 trailing P/E limits upside to 11%, while Alphabet's cheap 26 P/E and 82% Cloud growth support a 60% upside target.
Alphabet trades cheaper than Meta and AI peers despite 32% operating margins, and even its bear case of $433 sits above the current price.
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Two of the market's most-watched companies reported blowout quarters on the same night, and both sold off anyway.
Tesla (NASDAQ:TSLA) beat revenue by 7.10% yet missed EPS by 38.51%, while Alphabet (NASDAQ:GOOG) crushed EPS by 199.41%. Both stocks fell. Our 24/7 Wall St. price target says both selloffs are opportunities, but for very different reasons.
The Verdict: Two Blowouts, Two Buys
Our 24/7 Wall St. price target for Tesla is $413.49, implying 10.56% upside from $374.01. Our 24/7 Wall St. price target for Alphabet is $545.95, implying 59.68% upside from $341.91. Both earn a buy at high confidence.
Metric
Tesla
Alphabet
Current Price
$374.01
$341.91
24/7 Wall St. Price Target
$413.49
$545.95
Upside
10.56%
59.68%
Recommendation
Confidence
90%
90%
Blowout Quarters, Cold Market Reception
Tesla posted record deliveries of 480,126 vehicles and revenue of $28.24 billion (+25.52% YoY), but operating margin collapsed to 1.4% and free cash flow flipped to negative $1.09 billion. Shares are down 5.18% on the week and 16.83% year to date.
Alphabet's Q2 revenue of $119.80 billion (+24.23%) was overshadowed by $44.92 billion in single-quarter capex, a suspended buyback, and roughly $70 billion in combined equity and debt raised.
The stock dropped 7.64% on the week even with Cloud growth accelerating to 82%. As Sundar Pichai put it, "Q2 was an amazing quarter, with Alphabet revenues growing 24% year-over-year and Google Cloud revenues accelerating to 82% growth."
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Bull and Bear Cases in Brief
Tesla bulls point to 1.48 million FSD subscriptions (+56% YoY), a seven-metro robotaxi footprint, and Optimus production lines going in at Fremont. Our bull case is $479.66. Bears note capex ballooning 141.81% against collapsing margins; the bear case is $365.83. Polymarket's crowd is skeptical, implying a $341.37 target, well below analyst consensus of $425.22. Multiple analysts lowered their price target on the stock.
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TSLA Price Target — 24/7 Wall St.
Alphabet bulls have 58 buy ratings and a consensus target of $430.07. Our bull case is $610.65, driven by Gemini's 950 million MAUs and Cloud momentum. Raymond James analyst Josh Beck lowered the firm's price target on Alphabet to $400 from $425 and keeps a Strong Buy rating on the shares. The bear case is $432.97, still above spot. Bears would argue negative FCF is unsustainable, though this reflects front-loaded AI infrastructure investment as the operating business remains highly profitable.
GOOG Price Target — 24/7 Wall St.How They Stack Up Against Meta
The right cross-check for Alphabet's capex-driven selloff is Meta Platforms (NASDAQ:META), the other hyperscaler funding an AI arms race. Alphabet trades at a trailing P/E of 26, the cheapest mega-cap in the AI cohort, while Tesla's 344 trailing multiple is in a different universe.
Meta faces the same investor pushback on AI spending, but Alphabet layers on 32.05% operating margins and 82% Cloud growth. Against this peer set, our $545.95 target for GOOG looks reasonable, and our $413.49 target for TSLA looks appropriately cautious.
Company
Trailing P/E
Latest Rev Growth
Alphabet
26
24.23%
Tesla
344
25.52%
Meta
Peer benchmark
Peer benchmark
The Bottom Line: Both Selloffs Look Overdone
The 24/7 Wall St. model rates both buy, with higher conviction on Alphabet. The 24/7 Wall St. price target of $545.95 for GOOG reflects a rare combination of cheap multiples and accelerating growth.
Tesla at $413.49 is a narrower call: the thesis strengthens if robotaxi economics prove out, and remains more uncertain if operating margin stays below 5% into Q3.
Year
TSLA Target
GOOG Target
2026
$413
$546
2027
$445
$680
2028
$475
$820
2029
$505
$1,020
2030
$538
$1,228
These projections assume both companies continue executing on AI and autonomy strategies. Significant upside or downside could come from robotaxi commercialization at Tesla and Cloud share gains at Alphabet.
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Contact editorial@247wallst.com for any questions or corrections.
Source: “AOL Money”
