Meta & TSLA Earnings the Good and the BAD

All right, we got two big tech companies that have reported earnings tonight. Meta seems to have popped and Tesla, for the time being, is heading south. I'm going to go over what happened in those earnings events. And I'm going to tell you the most critical line that Meta has to get above for this to continue to rally and for anybody to make any money and for Tesla to go to the downside. What level is the floor? Where can it not afford to cross below? I'm going to give you Meta to the upside and Tesla to the downside. Welcome to Wall Street. This is the stocks with Josh show. A couple stocks I've called out this week are doing pretty good. Keep an eye on Rocket Labs. It went a little higher today. Uh I also noticed that Service Now, ticker NOW, has finally hit my highest up target. And I'm going to have to cover that with you guys. I would say that when we get to my top lines where it hits those ascending lines of resistance, that's when you really want to consider potentially hedging your position or tightening up your stop. I'll cover those in the coming days. So, what happened with Tesla's earnings? They gave investors some good news, but there's still a big question about profits. I feel like we've been talking about Tesla profits for the last two years. The company kept more money from its car sales and they generated about $1.5 billion dollars in free cash flow. That's cash left after running the business and paying for investments. Now, spending less than Wall Street expected helped that number. But investors are also watching for growing self-driving subscriptions, robo taxi expansion, and discussions about the big possible Tesla SpaceX merger that tons of people speculate about. The merger is being explored, but of course, it's not a done deal. Here's the concern. Quarterly profits fell 44% from a year earlier. So, the excitement is about what Tesla could earn down the road. The cash flow is encouraging, but now Tesla needs to turn its self-driving and robo taxi plans into consistent profit growth. Let's take a minute and go look at the Tesla chart, and I'm going to give you the important number that it needs to stay above if this thing is going to have a big breakout move on its potential for the next earnings event. All right, as you guys can see with Tesla, we've been rangebound between 380 and 350. A little bit lower than the bottom of this range is this critical price of 345. If we close two 4hour candles underneath 34588, then we are likely going to go on and make a lower low, which is quite a big drop. That was that original prediction that I gave you guys of a possible move in 2026 all the way down to 290. Now just because the market did not react well to the earnings event and you can see that we have failed to break out. We did ultimately make a higher high. So the trend for the time being is absolutely still to the upside. The only time that Tesla investor panics or even significantly hedges their Tesla investment is if we get a close underneath this 34588. I think it's inevitable that we're going to have to come back and test this range so that even if this is going to go higher this year, it could prove that it can hold that support and continue to climb into 2027. So, those are your most critical levels on Tesla. Let's dive into what was learned from Meta's earnings. Now, they brought in more money than Wall Street expected, but its AI ambitions have come with a massive bill. That's been the concern on a lot of the AI story stocks. Revenue grew 26% to $64.6 billion. A one-time legal charge hurt reported earnings, but without that charge, profit per share would have beaten expectations. There's also excitement around Muse, Meta's AI assistant, which Zuckerberg says has passed 10 million users. The next question is how much money those users will generate. Meanwhile, Meta expects to spend between 135 and $145 billion this year on infrastructure and more interest in seeing the ROI on all of that. It also plans a new class of shares without voting rights. Issuing additional shares could reduce existing investors ownership percentages. Let's go look at the charts and see what the important number is for people that believe that Meta is going higher right now. All right, first thing I want to point out to you guys is that when we were up here, I told you that we were likely going to fade the top and that we had to come back to this 690 and bounce. And we did all that and then yesterday I said, "Hey, looks like we've hit our target. Now we have the opportunity to potentially go higher." Now, what I see right here is a sell the rip event. Sell the rip event. Yes, it ran up to 743, but 743 is a critical area of resistance that I've had drawn on my chart. Now, if and only if we get two 4hour candles that can close above 743 does Meta continue in the up story. If we cannot get back above 743, I would say by the end of this week, then the likelihood is that we're going to retest this 690 for a second time. And the story is that even though Meta had great earnings, Wall Street chose to take profits and sell the RIP. Of course, if we lose 690, you're going to have a target of around 666 where there will be a stock reaction, but it'll likely be a minor bounce for the bigger move all the way down to 611. And now I know how this goes. Some people just simply heard that Josh is bearish on Meta. The stock is coming down and it's likely to hit 611. Note, you got to take one candle at a time. In this particular case, we're going to be watching those 4hour candles. We need to see a 4hour candle get above 743 or we need to see a 4hour candle get beneath 690. For the time being, it's still up at the top. And as I said the last couple times, I've talked about this particular play. There is actually more risk on the bulls right now because we're heading towards that Fed rate decision on October 28th that could seriously move these markets. What do you think is going to happen for Meta and Tesla? Do you think Meta's climbing above 743? Do you think that Tesla is going to test and fail at 3:45? Let me know in the comments. Don't sleep on the Stocks with Josh Discord. I'm going to be live trading with the community again this Friday. Get in there and spend some time with us over at the Stocks with Josh community. Check this video out at the end. And peace and blessings, my friends. >> Green Socks, green day. [snorts] >> Don't jinx it. What are you doing? Can't move. The trade's working. Buy the dip. Take a sip. Are the results good though? Define good. Or you can trade with people who actually know what they're doing. Live sessions [music] every day, levels before the bell, a plan on every trade. Okay, that does look better. >> Trading alone gets weird. [music] Trading together gets better. In the Stocks with Josh Discord, we trade live every market morning. And you get the tools to help you succeed. trade alerts, custom indicators, and a plan on every trade. Join us today. Link is in the description. Can I keep the socks? >> Sure.