Both Tesla and Alphabet are opening much lower after earnings, but the reasons for these moves are different. Tesla’s problem is impoverished profit conversion and rising expenses, while Alphabet’s results were mighty enough to suggest that the current selloff may finally attract buyers.

Tesla: Collapse points to further flaws

Tesla delivered high vehicle volumes, but higher sales did not translate into higher profits. Revenue increased 26%, but operating income dropped 57% and operating margin fell to just 1.4%. At the same time, capital spending more than doubled as Tesla continued to invest heavily in robotics, Optimus, AI infrastructure and novel manufacturing capacity.

Technically, the company’s stock has now fallen below its anchored VWAP near $370, removing an crucial area of ​​lively support. The price is also below the middle of a broader descending channel, suggesting that sellers remain in control.

The closest area to watch is around $345-$350, close to the 50% Fibonacci retracement. A sustained break below this zone could open the way towards $320, near the 61.8% retracement, before the lower boundary of the falling channel appears near $280-$300.

Any bounce towards the anchored VWAP can now be considered resistance unless Tesla manages to regain and sustain above $370.

Alphabet: Good results can support a rebound

Alphabet’s operating results were much better. Revenue increased 24%, while Google Cloud revenue increased 82% to $24.8 billion. The market is not interested in current demand, but in the scale of future AI investments and its impact on free cash flow.

The lower gap pushed Alphabet into a key technical area around $323-$327, where the lower end of the long-term rising channel meets the lower edge of the short-term falling channel.

This overlap in performance could provide support, especially as earnings weakness are driven by investment concerns rather than deterioration in the core business.

The rebound would initially center on the anchored VWAP near $346. If the price can rise above this level, the next resistance will be around $358-$363. However, failure to stop the current channel crossing could expose the $300-$305 region.

For now, Tesla’s structure remains clearly bearish, while Alphabet is approaching an area where buyers can start testing whether the earnings gap has gone too far.