KNOW THIS BEFORE TESLA REPORTS EARNINGS TODAY!!!
In a Nutshell
Tesla reports earnings today at extreme valuations (360x earnings) with razor-thin margins, while Alphabet offers more reasonable 26.5x P/E and consistent beats. ServiceNow faces mounting competitive pressure and declining growth, trading at 56x despite 45% losses this year. Beginners are warned against trading earnings due to volatility, while quality companies like Google are positioned as long-term holds versus speculative plays.
These notes were generated by AI and may contain inaccuracies.
Alphabet (Google's parent company) and Tesla are scheduled to report earnings today after the bell. The video provides a market update covering expectations for these companies and asks viewers to drop a thumbs up if they want a live stream of the earnings report. Viewers are encouraged to subscribe and turn on post notifications for live updates.
The NASDAQ started red but resumed its typical pattern of gapping up as soon as markets opened. This behavior is described as occurring almost every single time, with markets gapping up right before major earnings reports and then selling off before close in preparation or derisking. Caution is advised against buying with leverage at elevated levels.
Tesla is characterized as an overvalued company with high valuations despite being technically oversold based on previous patterns. Using Investing Pro software (first link in description), fair value analysis indicates at least 28% downside. Tesla trades at over 360 times its earnings. The question is raised about how much longer the market will price in hype when the company delivers nothing. Tesla reports earnings today after the bell with expected EPS of 52 cents and revenue of $26 billion, described as razor thin margins for a Mag 7 trillion company.
Alphabet has expected EPS of $2.88 and revenue of $17 billion. The company is noted for often delivering better than expected results. Investing Pro shows historical beat/miss data: in February 2025, Alphabet missed revenue by $220 million against $96.47 billion. Six of the nine previous earnings reports resulted in positive market reactions, while three were negative. Alphabet produces $422 billion in revenue with $160 billion in net income and trades at a P/E ratio of 26.5 times earnings.
Beginners are advised not to trade earnings due to high volatility and risk. Alphabet typically does not move significantly on earnings but anything can happen. Trading during extended hours with limit orders is described as more challenging. The recommendation is to learn to walk before running, with a focus on making beginners aware of higher-risk plays so they can stay cautious.
Google, Microsoft, Amazon, and Meta are highlighted as companies making substantial money, while other wannabe companies receive more attention despite being nowhere close in profitability. The suggestion is made that investors can have higher-risk plays with smaller capital amounts while also maintaining exposure to quality companies over the long term. Investors are encouraged to consult financial advisors about potential exposure to Google, NASDAQ, or S&P 500.
Alphabet is praised for performing well technically with strong long-term price performance, though recent months have been stagnant due to semiconductor and memory chip sector issues. Some pullback or correction potential is noted as the stock may be slightly overbought.
ServiceNow, along with IBM, is also reporting earnings today. ServiceNow previously received significant attention when bullish but receives less coverage after breaking its pattern. The stock declined from highs of $239 to $96, representing over 50% loss, yet still trades at a P/E ratio of 56. Analyst fair value suggests 53% upside. Recent earnings reactions have been consistently negative. Expected EPS is 86 cents with revenue of $3.93 billion.
ServiceNow is known for healthy margins and incredible growth rate, but concerns include increased competition from larger players and potential inability to compete. Price targets have been revised down, with the stock declining approximately 45% over the past 12 months and 38 downward EPS revisions. Geopolitical instability in the Middle East caused deal delays impacting Q1 2026 subscription revenue growth by 75 basis points. Additional concerns include cash flow margins declining 20 basis points and generative AI potentially resolving IT tickets autonomously, reducing demand.
ServiceNow's competitors are described as much better financed or larger companies, presenting a bigger market share threat than before. The company was a strong performer in 2025 but is now among the worst performers with consistent lower highs and lower lows.
IBM is also reporting earnings today after the bell. The stock experienced a significant gap down to lows near $200 per share, approaching 52-week lows. Based on previous highs, there is some recovery potential, though it remains to be seen whether earnings will act as a positive catalyst or produce another leg down.
The video concludes with a commitment to keep viewers updated and a plan to live stream the earnings later in the day pending sufficient engagement through likes and subscriptions.
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