Markets· August 16, 2026 at 02:05 p.m.
Meta and Tesla Rebound from Oversold Levels: What's Next for Investors
Key takeaways
- Meta and Tesla have RSI readings recovering from oversold territory
- Meta's Q2 revenue increased by 28% YoY despite an EPS miss
- Tesla missed Q2 EPS estimates for the fifth time in nine quarters
Two tech giants, Meta Platforms (META) and Tesla (TSLA), have shown signs of recovery from oversold levels according to the relative strength index (RSI), potentially offering value opportunities for investors. Both companies are part of the Magnificent Seven stocks.
Meta's Q2 revenue increased by 28% year-over-year, despite a first EPS miss in 15 quarters. The company holds a consensus Moderate Buy rating with about 32% upside potential. Tesla missed Q2 EPS estimates for the fifth time in nine quarters but still has an average 12-month price target suggesting nearly 18% upside.
Meta's RSI score improved from 31 to 48, while Tesla's bottomed out at 25 and is now approaching 50, which indicates a neutral position. Meta's stock has fallen about 20% from its year-to-date high, partly due to concerns over capital expenditures on AI infrastructure and legal expenses.
Tesla's stock has regained nearly 10% since bottoming out but still shows a YTD loss of 25%. The company's earnings remain volatile, with a forward P/E ratio of 384, one of the highest in the S&P 500. However, Tesla's earnings are forecast to grow nearly 57% over the next year.
