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This is an important week for earnings as Wall Street is moving beyond the banks to every other industry. The first two Magnificent 7 stocks are reporting this week in Alphabet and Tesla.

But in addition to those two large cap stocks, there are dozens of other S&P 500 large cap companies who will also be reporting.

But all eyes will be on Alphabet and Tesla. It is a tale of two different paths for these two mega-cap companies.

Alphabet Versus Tesla: Who is the Bigger Earnings Winner?

Alphabet has a solid earnings surprise track record, having beaten 9 consecutive quarters. However, Tesla has missed on earnings two quarters in a row.

Alphabet is one of the cheapest of the Mag 7 stocks, but Tesla is one of the most expensive on a price-to-earnings (P/E) basis. Earnings are going in different directions for the two companies as well.

Will Alphabet and Tesla earnings be market movers this week?

2 Magnificent 7 Stocks to Watch This Week: Alphabet and Tesla

1. Alphabet Inc. (GOOGL - Free Report)

Alphabet owns YouTube and has an AI product in Google AI and Gemini. It has only missed on earnings 4 times in the last 5 years. Alphabet has now put together a nice earnings surprise streak, of 9 beats in a row.

Alphabet shares have lagged the S&P 500. It’s up just 0.4% year-to-date and over the last year is up just 7%. Alphabet trades with a forward P/E of just 19.4, which is below the 21.7x of the S&P 500.

Alphabet’s earnings are expected to rise another 18.8% this year after jumping 38.6% last year.

Will Alphabet beat again and put to rest some of the fears about AI?

2. Tesla, Inc. (TSLA - Free Report)

Investors and traders of Tesla have never cared if the company beat on earnings. It has missed two quarters in a row, but Tesla still trades with a forward P/E of 186. A P/E over 20 is considered expensive.

While shares of Tesla are down 19% year-to-date, they are off recent lows and are still up 37.3% over the last year. Earnings are expected to fall 27% this year after falling 22.4% last year.

Will the Street brush off Tesla’s weak earnings in favor of the future with autonomous cars, robotaxis and robots?

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