WEBVTT - Alphabet Falls, Estee Lauder Tumbles, Hershey Rises on Positive 2026 Forecast

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news, The.

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<v Speaker 2>Stock Movers Report, your roundup of companies making moves in

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<v Speaker 2>the stock market. Harnessing the power of Bloomberg Data. Let's

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<v Speaker 2>take a look at some of the stocks on the

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<v Speaker 2>move today. We can do that with Bloomberg's Alexandra semon Manova.

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<v Speaker 1>Minova it had her brain. So the guys, we have

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<v Speaker 1>to start with Google parent Alphabet. John just mentioned that

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<v Speaker 1>a lot of investors are upset about that big CAPEX number,

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<v Speaker 1>but there are a lot of positives in this report.

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<v Speaker 1>Despite the stock slumping today, the company topped projections for

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<v Speaker 1>quarterly revenue, specifically for its Google Cloud. Revenue jumped forty

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<v Speaker 1>eight percent to a whopping seventeen point seven billion dollars

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<v Speaker 1>that handily beat Wall Street estimates. Gemini its artificial intelligence model.

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<v Speaker 1>It is also rapidly reaching new users. And then here's

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<v Speaker 1>the number that is making traders upset. Capex will reach

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<v Speaker 1>as much as a one hundred and eighty five billion

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<v Speaker 1>dollars this year, compared to roughly one hundred and twenty

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<v Speaker 1>billion dollars that analysts were expecting. They're expected spending for

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<v Speaker 1>twenty twenty six altogether, will also total more than what

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<v Speaker 1>the company spend in the prior three quarters, but CEO

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<v Speaker 1>Sindhar Pachai is saying that this is necessary, that they're

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<v Speaker 1>already seeing that spending actually be monetized in their AI endeavors.

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<v Speaker 1>And then Jeffrey's analysts also point out that AI is

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<v Speaker 1>paying off for Google. I'm well enough to remember when

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<v Speaker 1>companies actually get rewarded for taking their AI capex. Yeah,

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<v Speaker 1>not so much anymore. I loved what one trader said

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<v Speaker 1>that this was Alphabet's mic drop kapex because the number

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<v Speaker 1>is so mammoth. What else are you looking at, Alex? Yeah,

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<v Speaker 1>I'm also taking a look at shares of S day later.

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<v Speaker 1>Looks like they're down twenty percent right now. Really tough

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<v Speaker 1>day for the company. It boosted its outlook, but it

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<v Speaker 1>just wasn't enough for investors who were expecting more from

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<v Speaker 1>its turnaround effort. Helmed by their new CEO, Stephanie de

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<v Speaker 1>la for Favaray, Sorry if I'm mispronouncing her name, the

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<v Speaker 1>company narrowly narrowly beat Wall streets expectations for revenue and

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<v Speaker 1>adjusted earnings per share in its most recent quarter. That

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<v Speaker 1>was lifted by growth in skincare products including Lamaire and

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<v Speaker 1>the ordinary people were also buying their fragrances from tom

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<v Speaker 1>Ford and Lalabo. It also narrowed its outlook range four.

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<v Speaker 1>Net revenue growth in the current fiscal quarter end in

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<v Speaker 1>June now forecasts three percent to five percent growth. So

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<v Speaker 1>solid number is just a really high bar, as we're

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<v Speaker 1>seeing with a lot of companies this earning season.

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<v Speaker 2>You have to invest in your face.

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<v Speaker 1>I mean I learned that from Alex Let's see who

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<v Speaker 1>said that. There's actually I have not There is a

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<v Speaker 1>great article I don't remember who published it about how

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<v Speaker 1>because millennials can't afford homes, they're actually investing in skincare

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<v Speaker 1>products and self care. Okay, affordable luxuries because are not

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<v Speaker 1>exactly all right, let's move on to another household name. Yeah,

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<v Speaker 1>we have to end on a high note. So many

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<v Speaker 1>negative news today, but some positive news from Hershey. They

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<v Speaker 1>offered a better than expected to twenty six outlook. Just

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<v Speaker 1>taking a look at the stock right now, shares are

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<v Speaker 1>up about seven percent. They said that higher prices and

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<v Speaker 1>new products are set to boost performance. The company sees

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<v Speaker 1>adjusted earnings per share of about eight dollars and twenty

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<v Speaker 1>cents to eight dollars and fifty two cents, and sales

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<v Speaker 1>gaining four percent and five percent in twenty twenty six.

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<v Speaker 1>They have, of course been impacted by tariffs and higher

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<v Speaker 1>cocoa costs, but chocolate makers did get a little bit

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<v Speaker 1>of reprieve when the President said that he will not

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<v Speaker 1>issue reciprocal tariffs on coco or. She also said that

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<v Speaker 1>cost pressure from commodities and tariffs is set to be

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<v Speaker 1>better this year, so they're going to spend more of

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<v Speaker 1>that money on advertising.

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<v Speaker 2>The Stock Movers report from Bloomberg Radio. Check back with

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<v Speaker 2>us throughout the day for the latest roundup of companies

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