Stock Movers: Alphabet's Capex Surge, Estee Lauder's Turnaround Woes, Hershey's Positive Outlook

Alphabet's Massive Capex Investment

• 🚀 Alphabet is facing investor concern over a projected $185 billion capital expenditure for 2026, significantly exceeding analyst expectations.
• 💡 Despite the stock's slump, the company exceeded quarterly revenue projections, with Google Cloud revenue soaring by 48%.
• 🧠 Gemini, Alphabet's AI model, is rapidly acquiring new users, and CEO Sundar Pichai asserts the increased spending is necessary for AI endeavors.
• 📈 Analysts note that AI is proving profitable for Google, with some traders dubbing the capex announcement Alphabet's "mic drop."

Estee Lauder's Turnaround Challenges

• 📉 Estee Lauder shares dropped 20% despite an improved outlook, as investors sought more reassurance about its turnaround.
• 💄 The company narrowly beat revenue and adjusted earnings per share expectations, driven by growth in skincare products like La Mer and The Ordinary, and fragrances from Tom Ford and Labo.
• 📊 Estee Lauder narrowed its fiscal quarter net revenue growth forecast to 3% to 5%, indicating solid but high expectations.
• 💡 A discussion touched on millennials investing in skincare as an affordable luxury due to the unaffordability of homes.

Hershey's Promising 2026 Forecast

• 🍫 Hershey saw its stock rise approximately 7% following a better-than-expected 2026 outlook, attributed to higher prices and new products.
• 💰 The company projects adjusted earnings per share between $8.20 and $8.52, with sales growth of 4% to 5% in 2026.
• 📉 Hershey has navigated challenges from tariffs and higher cocoa costs, with a reprieve from potential reciprocal tariffs on cocoa.
• 📢 Hershey plans to allocate more resources towards advertising due to improved cost pressures from commodities and tariffs.