Spotlight
Alphabet and Tesla both reported earnings after the close on Wednesday, July 22. Both beat revenue expectations. Neither stock had a run-up into the print — both had been under pressure heading in. Here is the bull and bear case for each, and what I think it means.
| YTD | Earnings | |
| Alphabet (GOOGL) | +1.2% | ▲ Beat |
| Tesla (TSLA) | -13.1% | ▲ Beat |
Alphabet made a lot of money last quarter. Search held up, YouTube grew, and Google Cloud is accelerating — directly capturing AI-driven enterprise demand. But the detail that tends to get overlooked: Google has a significant stake in Anthropic, one of the leading AI labs in the world. Yes, Anthropic competes with Google's own AI products. But Google invested early and that position has appreciated enormously as Anthropic's valuation has climbed. The company is not just defending against the AI wave — it is invested in the companies leading it. That is a strategically smart hedge, and it adds a layer of value that does not show up cleanly in quarterly earnings. Add in Waymo, which is generating real revenue in select markets, and you have a business with multiple compounding growth engines beyond the core ad model.
The DOJ antitrust case is the biggest overhang — a forced restructuring of Google's default search agreements could structurally alter ad revenue. And while the Anthropic investment is a smart hedge, it also signals that Google is not fully confident its own AI can win. Competition from OpenAI, Perplexity, and others is real. If AI fundamentally changes how people search, Google's core business faces a longer-term reckoning that one strong quarter does not resolve.
Tesla has never been a company you buy for what it is today. You buy it for what it is becoming. And right now, what it is becoming is getting harder to dismiss. The robotaxi program is no longer a concept deck — it is operating commercially in select cities. Optimus, the humanoid robot, has moved from prototype to limited production. The energy storage business (Megapack) is growing fast and carries better margins than vehicles. Tesla beat on revenues this quarter coming off a period of real pressure: the stock is down 13% YTD while the S&P is up 8% and the Nasdaq is up 13.4%. That gap is significant. It reflects genuine skepticism. But for investors who believe in the long-term vision, that skepticism is exactly what creates opportunity. The promise of autonomous vehicles and humanoid robots is not science fiction anymore — it is in field trials, generating data, and approaching commercialization. If that comes to fruition, the current price will look like a bargain.
The core automotive business is under real pressure. Margins have been squeezed by repeated price cuts, and BYD and other Chinese EV makers are competing aggressively on cost. Elon Musk's attention is distributed across multiple companies, and his political profile has created brand friction that has hurt sales in key markets. Robotaxi and Optimus timelines have slipped before — and the market has been burned pricing in Tesla's moonshots early. If autonomous driving faces further regulatory delay or technical setbacks, there is no near-term fundamental story to support the valuation.
I am bullish on both names, and I want to be direct about why. Neither stock ran into earnings — they both came in under pressure. Tesla is down 13% for the year while the indexes are up 8-13%. That is a meaningful gap, and it reflects real skepticism about whether the robotaxi and robot promises will actually materialize on schedule. I understand that skepticism. But here is my view: if you do not believe Tesla can deliver on autonomous vehicles and humanoid robots, you should not be in the stock. That is the thesis. It always has been. For investors who do believe in it — and the evidence that it is becoming real is stronger today than it has ever been — the current price relative to the indexes looks like an opportunity. On Alphabet, the Anthropic stake is underappreciated. Google invested in one of its own competitors and that investment has compounded significantly. That is not a company in denial about AI disruption — that is a company that understands it well enough to bet on multiple outcomes. Strong quarter, strong balance sheet, and a portfolio of businesses that extends well beyond search. As always, whether any of this fits your specific situation is a conversation I am happy to have.
Market price and performance data sourced from Yahoo Finance. YTD performance measured from January 2026. Data reflects closing prices as of July 22, 2026 and may be subject to revision.
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. Investing involves risk including possible loss of principal. The opinions expressed are those of Gabriel Sakellaridis and are subject to change. All indices are unmanaged and may not be invested into directly. Securities and Advisory services offered through LPL Financial, A Registered Investment Advisor, Member FINRA/SIPC.