Stock Movers: Bitcoin Selloff Hits MicroStrategy, Alphabet's AI Spending, Estee Lauder & Hershey Outlooks

MicroStrategy's Bitcoin Exposure

• 📉 MicroStrategy (MSTR) shares are significantly impacted by the recent Bitcoin selloff, dropping 15% in a single day and nearly 30% year-to-date.
• 💡 The company, an original digital asset treasury, is feeling the brunt of Bitcoin's decline, which is down approximately 45% from its October highs.
• ⚠️ MicroStrategy's stock, once trading at a premium of more than double its Bitcoin holdings, now sees only a 9% premium and is expected to report a multi-billion dollar loss.
• 📊 The model of companies hoarding crypto assets like Bitcoin is being severely tested, with MicroStrategy's stock falling from nearly $474 to $109.

Alphabet's AI Investment and Cloud Growth

• 🚀 Alphabet (GOOGL) is poised to significantly increase its capital expenditures, planning to spend as much as $185 billion in 2026, exceeding prior three-year combined spending.
• 💡 Despite the high capex, which disappointed some investors, Alphabet's Google Cloud unit saw revenue jump 48% to $17.7 billion, handily beating estimates.
• 📈 Gemini, Alphabet's AI model, is rapidly acquiring new users, and CEO Sundar Pichai asserts these costs are necessary for monetizing AI investments.
• ⚡ The stock has shown resilience, bouncing back from an 8% decline to trade significantly higher, indicating investor optimism despite the massive spending.

Estee Lauder's Turnaround Challenges

• 💄 Estee Lauder (EL) shares experienced their worst decline on record, falling 21%, even after the company boosted its outlook.
• 🎯 Investors were not reassured by the pace of the turnaround effort under the new CEO, despite narrowly beating revenue and adjusted earnings expectations.
• 🛍️ Growth was noted in skincare products (La Mer, The Ordinary) and fragrances (Tom Ford, Jo Malone, Le Labo), indicating consumer spending on premium items.
• 📊 The company narrowed its net revenue growth forecast to 3%-5% for the period ending in June.

Hershey's Positive Outlook

• 🍫 Hershey (HSY) shares rose following a better-than-expected 2026 outlook, driven by higher prices and new products.
• 💰 The chocolate maker projects adjusted earnings per share between $8.20 to $8.52, with the low-end surpassing Wall Street estimates by approximately 15%.