The Magnificent Seven technology stocks are back in focus. The second-quarter earnings season for the technology stocks begins today with Alphabet and Tesla publishing their quarterly results on July 23.
Both Nasdaq’s and S&P 500 are at record highs and the future direction will depend a lot on the big tech’s earnings and their guidance reports.
Alphabet (NASDAQ: GOOG, GOOGL) second quarter financial results are releasing today. Alphabet will hold its quarterly conference call to discuss second quarter 2025 financial results on Wednesday, July 23, at 1:30pm Pacific Time (4:30pm Eastern Time). The live webcast of the earnings conference call can be accessed at the youtube.com/@alphabetir
Strength and Competition
Google’s AI investments are expected to yield a strong quarter, with YouTube and Google Cloud segments expected to be key contributors.
Alphabet’s digital presence is bolstered by user data, publisher relationships, and underappreciated segments like Google Cloud, YouTube, and Waymo, which could be crucial in the future of AI.
However, AI-driven chatbot alternatives like OpenAI’s ChatGPT and Anthropic’s Claude are posing competition, offering new information sources beyond traditional search methods.
Alphabet shares are available at $190, almost the same price it quoted at the start of 2025.
Price Targets
Bank of America’s analysts suggest AI competitors could impact Alphabet’s click-through ad revenue. Morgan Stanley raised Alphabet’s price target to $205, citing improved innovation, clearer disclosures, and AI productization. Rothschild & Co Redburn has adjusted the price target on Alphabet from $205 to $215, maintaining a Buy Rating.
The key question for investors is whether Alphabet can achieve over $10 earnings per share by 2026. For the second quarter, Alphabet is expected to report net earnings of $2.18 a share on revenue of nearly $80 billion, according to data compiled by Bloomberg.
Alphabet, the cheapest among the seven most valuable technology companies, is priced 18 times estimated earnings, nearly half of Microsoft Corp.’s 33 times.
Q1 Earnings
For the Q1 ending March 31, 2025, the consolidated Alphabet revenues in Q1 2025 increased 12% year over year to $90.2 billion reflecting robust momentum across the business, with Google Search & other, YouTube ads, Google subscriptions, platforms, and devices, and Google Cloud each delivering double-digit growth rates.
Net income increased 46% and EPS increased 49% to $2.81 and the company at that time announced a 5% increase to the dividend, resulting in a quarterly cash dividend of $0.21.
Q1 quarter saw the launch of Gemini 2.5, and search growth continued, boosted by AI Overviews’ 1.5 billion monthly users.
Tesla Q2 Results
Tesla is under pressure as it begins the earnings season, and it will also report on Wednesday. Tesla will post its financial results for the second quarter of 2025 after market close on Wednesday, July 23, 2025.
At that time, Tesla will issue a brief advisory containing a link to the Q2 2025 update, which will be available on Tesla’s Investor Relations website. Tesla management will hold a live question and answer webcast that day at 4:30 p.m. Central Time (5:30 p.m. Eastern Time) to discuss the Company’s financial and business results and outlook.
On revenue of $22.1 billion, analysts anticipate earnings per share of 39 cents, down from 52 cents and $25.5 billion in the previous year. In the quarter, the company sold 384,000 cars, which is a 13.5% decrease in unit sales compared to the previous year.
Shares of Tesla remain down 18% year-to-date despite a 57% gain over the past 12 months.
Tesla runs the risk of showing full-year profitability due to the recent removal of the federal EV tax credit under President Donald Trump’s new tax legislation and the postponed introduction of Tesla’s less expensive EV model.
In June, Tesla began a small-scale robo-taxi service in Austin, Texas, with plans to sell humanoid robots on a large scale by 2026.
Additional hints regarding timing and monetization strategies for these futuristic wagers may be revealed by the results of the next earnings call.
Tesla is facing new policy challenges in addition to EV demand. A waiver granted by Congress to California to control its own air emissions was recently canceled. This law served as the foundation for a large portion of Tesla’s zero-emission vehicle (ZEV) credit earnings.
Elon Musk, the Tesla CEO, has rekindled a feud with President Trump and hinted at his own political ambitions after a quiet period. Elon Musk reportedly slept at Tesla’s office, a move that investors may interpret as a sign of recommitment or distraction.
Options markets predict a 7% Tesla share swing following earnings, with the company posting an average 11% move in the last four reports, including three upside surprises and one decline.
Summing up
The S&P 500’s group of companies, including Apple, Amazon, Alphabet, Meta, Microsoft, Nvidia, and Tesla, is projected to see a 14.1% combined earnings growth. The S&P 500‘s other 493 companies are expected to see a modest 3.4% year-over-year increase.