On July 25, during the Market on Close livestream, Barchart’s John Rowland and “Twitter Tom” engaged in an interesting debate over which stock deserves your attention more: Google or Tesla?
Both are recognized as tech titans, each with ambitious plans in AI and robotaxis, but, as Tom pointed out, the attractiveness of either stock could hinge on how long you’re planning to invest.
Google (GOOG, GOOGL): A Quick AI Wins Maker
Despite worries that competitors might steal its edge, Google reported a staggering quarterly revenue of $54 billion from Search alone, a 12% increase compared to last year. Talk about staying strong!
What helps Google stay on top?
- Strong protections around its Search services
- A whopping $85 billion invested in AI chips and infrastructure
- Ownership of Waymo, a leading name in autonomous ride-hailing
- A stable balance sheet with various revenue sources like YouTube, Cloud, and Ads
John suggested that Google’s stock price may not completely reflect the true worth of its business segments. With an uptick in search activities and aggressive AI investments, GOOGL could be set for a solid performance over the next couple of years. Tom agrees, saying, “If you ask me which one I’d want to hold for the short term, my choice is unequivocally Google.”
Tesla (TSLA): A Long-Term Vision Hirer
In contrast, after a reported earnings dip of over 8%, Tesla has faced pressures from CEO Elon Musk’s political ties, the scaling back of U.S. EV incentives, and investor burnout. Yet, that hasn’t deterred Tom from accumulating shares despite the downturn.
What could support Tesla in the long run?
- Expanding into AI and robotics
- Aiming for a nationwide fleet of robotaxis
- If continued growth in electric vehicle production
- Elon Musk’s leadership and unfolding strategy
Tom confidently stated, “I think Tesla is going to revolutionize transportation. This is a 10-15 year investment for me. It may seem shaky now, but I have faith in Elon.”
The Race in AI: Google’s Waymo vs. Tesla’s Robotaxis
As both companies ramp up their work on autonomous vehicles, Google’s Waymo is way ahead in terms of implementation.
Highlights of Waymo:
- Active in cities like Phoenix, San Francisco, Los Angeles, Austin, and soon in Dallas
- Collaborating with Avis (CAR) and Uber (UBER)
- Completed over 250,000 driverless rides
Tesla’s Robotaxi Introduction:
- Rollout is currently limited to Austin
- Facing tech and legal hurdles
- Tech reliant on vision-based autonomy is still under scrutiny
While both companies are forging ahead towards the future of transport, Waymo seems to be more established in terms of infrastructure and actual execution. On the flip side, Tesla’s journey may yield high returns down the line.
Compare GOOGL and TSLA on Barchart
Curious to dive deeper into the performance of these stocks? Barchart offers tools particularly useful right now:
- Flipcharts let you examine past price actions and compare them alongside moving averages, RSI, and others.
- Stock Comparison allows for side-by-side evaluation using various metrics, revenue growth, and technical indicators.
- Barchart Trade Alerts provide automated signals for buying and selling, based on momentum and trends.
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As of the publication date, Barchart Insights holds no direct or indirect investments in any mentioned securities. The information shared here is solely for informative purposes, and you can read the full Barchart Disclosure Policyhere.
