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Key Takeaways

EssilorLuxottica stock drops as investors fear AI glasses

Shares of EssilorLuxottica fell on Thursday as analysts warned that investors are becoming cautious about AI glasses. The French-Italian company has partnered with Meta to develop Ray-Ban AI glasses and is pushing hard into wearable technology. Despite a recent 4.1 percent increase in first quarter sales, the stock declined due to concerns about integrating AI into eyewear products. Analysts at Oddo BHF noted that AI glasses are now seen as a risk rather than an opportunity. The company remains optimistic about the future of AI glasses and continues to invest in the technology.

EssilorLuxottica stock falls despite strong first quarter sales

EssilorLuxottica shares slid in Paris trading on Thursday even though the company reported a 4.1 percent increase in first quarter sales. The stock dropped nearly five percent while the overall market rose slightly. Analysts at Oddo BHF stated that AI glasses are now viewed as a source of risk after being seen as a major opportunity. First quarter sales reached 7.1 billion euros, representing a 10.8 percent organic gain. However, analysts at Jefferies lowered their expectations for organic growth in 2026 from 10 to nine percent due to macroeconomic uncertainties. The company did not provide detailed sales breakdowns for AI glasses.

AI concerns drive EssilorLuxottica stock decline

EssilorLuxottica stock fell by 3.5 percent in early trading as investors worry about the impact of artificial intelligence on the eyewear industry. The company, formed from the merger of Essilor and Luxottica in 2017, has been integrating technology into eyeglasses. Competitors like Google and Apple are exploring AI-enhanced glasses that could outperform traditional eyewear. Regulatory challenges regarding data privacy and safety also contribute to investor caution. CEO Francesco Milleri stated that the company is aware of the challenges but excited about the opportunities AI presents. The company remains focused on innovation and delivering value to customers.

EssilorLuxottica faces investor caution over AI glasses

Shares of EssilorLuxottica declined as investors turned wary of AI glasses despite the company's partnership with Meta. The French-Italian firm has invested heavily in smart glasses and other wearable tech products like smart contact lenses. CEO Francesco Milleri believes AI glasses could revolutionize how people interact with technology. While the company remains confident in its ability to succeed in the wearable tech market, some analysts expressed concern about generating profits from AI glasses. The partnership with Meta allows EssilorLuxottica to leverage expertise in AI and virtual reality. Stock prices have been volatile in recent months due to these developments.

Investors skeptical of AI glasses as EssilorLuxottica stock drops

EssilorLuxottica stock fell by 3.5 percent in early trading as analysts expressed skepticism about the viability of AI glasses. The company owns popular brands like Ray-Ban and Oakley and has invested heavily in AI technology to integrate into its products. Investors are not yet convinced of the benefits of AI glasses due to technical challenges and uncertain market demand. Management maintains that AI glasses represent the future of eyewear but acknowledges the need for further innovation. The company plans to continue investing in research and development to address technical hurdles. Success in this rapidly changing landscape will depend on the company's ability to innovate and adapt.

EssilorLuxottica stock drops despite strong first quarter sales

Shares of EssilorLuxottica slid on Thursday even though the company posted a 4.1 percent increase in first quarter sales to 7.1 billion euros. The nearly five percent drop in morning trading in Paris came despite the overall market rising slightly. Analysts at Oddo BHF noted that AI glasses are now seen as a risk after initially being viewed as a major opportunity. First quarter sales met analyst expectations and represented a 10.8 percent organic gain. However, analysts at Jefferies lowered their expectations for organic growth in 2026 from 10 to nine percent due to macroeconomic uncertainties. The company does not provide detailed sales and earnings guidance.

Applied Digital secures massive AI data center lease

Applied Digital shares jumped more than 12 percent after announcing a 15-year lease with a U.S. hyperscaler. The deal covers 300 megawatts of computing capacity at the 430-megawatt Delta Forge 1 site in southern U.S. This agreement lifts total contracted lease revenue to more than $23 billion. The customer becomes Applied Digital's second U.S.-based investment-grade hyperscale tenant. Major technology companies including Amazon, Google, Meta, Microsoft, and Oracle are investing billions to secure facilities for AI systems. Initial operations at Delta Forge 1 are expected to begin in mid-2027. The site is designed with high-capacity power and cooling systems for large-scale AI operations.

Applied Digital adds major AI tenant to Delta Forge 1 campus

Applied Digital announced a new U.S.-based high investment-grade hyperscaler tenant at its Delta Forge 1 campus. The 15-year lease covers 300 megawatts of critical IT load and represents approximately $7.5 billion in total contracted value. This addition expands total contracted lease revenue to over $23 billion and diversifies the customer base. More than 50 percent of total contracted revenue is now backed by investment-grade customers. Delta Forge 1 spans more than 500 acres and is designed to support large-scale AI workloads. Initial operations are anticipated to commence in mid-2027. The campus integrates high-density power delivery and advanced cooling architecture.

ServiceNow stock falls despite strong earnings and AI growth

ServiceNow stock got crushed in after-hours trading despite beating Wall Street forecasts for revenue and profitability. CEO Bill McDermott predicted that AI product sales would reach close to $1.5 billion for 2026, a figure 50 percent higher than prior forecasts. The stock declined as much as 14 percent after the earnings release. Investors cited economic uncertainty caused by the Iran war as a reason for reduced subscription sales growth. Overall subscription revenue still expanded at 22 percent to $3.77 billion in the quarter. McDermott dismissed the idea that AI agents will replace traditional software as a parlor trick. He emphasized that AI agents reinforce the value of existing software.

ServiceNow Q1 earnings show growth but margin pressure

ServiceNow reported Q1 CY2026 results with revenue up 22.1 percent year on year to $3.77 billion. Its non-GAAP profit was $0.97 per share, which was in line with analysts' consensus estimates. The company provided subscription revenue guidance for the full year of $15.76 billion at the midpoint. Operating margin was 13.3 percent, down from 14.6 percent in the same quarter last year. Management attributed performance to strong demand for its AI-native platform and successful integration of recent acquisitions. CEO Bill McDermott emphasized that AI is the biggest tailwind ServiceNow has ever experienced. However, delayed deal closings in the Middle East affected recognized revenue timing and contributed to margin compression.

Arm leads stock watchlists amid AI chip demand surge

Arm Holdings is included in top stock watchlists like the IBD 50 and IBD Sector Leaders due to its role in the AI megatrend. Arm designs chip cores that power everything from smartphones to data centers. Its technology is licensed to major players including Apple, Samsung, and Qualcomm. The company's focus on energy efficiency and performance makes it a key player in the AI megatrend. In addition to Arm, 12 other semiconductor companies were added to these watchlists. These prospects include Nvidia, AMD, Broadcom, and Texas Instruments. Investors recognize these companies as driving innovation in chip design as AI demand grows.

Meta cuts 8,000 jobs while Microsoft offers buyouts

Meta Platforms Inc. is planning to cut about 8,000 jobs, or 10 percent of its workforce, as part of a restructuring plan. The layoffs will affect employees across engineering, marketing, and other departments. The cuts are part of a broader effort to reduce costs and focus on core businesses like Facebook and Instagram. Meta faces increased competition from rivals such as TikTok and Snapchat, as well as regulatory scrutiny. Microsoft is offering buyouts to some employees as it looks to cut costs and streamline operations. Both companies are investing heavily in AI and other emerging technologies, which have been a significant drain on resources. The layoffs and buyouts reflect broader trends in the tech industry driven by competition and regulatory concerns.

Datavault AI patents target quantum security and tax tech

Datavault AI received a new patent and two Notices of Allowance covering quantum-resistant data valuation and tokenized tax preparation technologies. The intellectual property expansion includes protections tied to digital asset tax reporting ahead of the first 1099-DA reporting season. These assets add to Datavault AI's existing work in data tokenization, blockchain-based services, and agricultural tokenization deals. The patents widen the scope of what the company may be able to monetize beyond its recently announced GPU network. Regulators are formalizing reporting rules around crypto and other digital assets. Infrastructure that supports compliant, secure data handling is a central part of this discussion.

Tesla plans $25 billion AI investment amid airline struggles

Tesla is signaling a major commitment to artificial intelligence with plans to invest $25 billion by 2026. This substantial investment underscores Tesla's long-term vision to integrate advanced AI capabilities across its operations. The company's earnings beat expectations, but these positive results were offset by the announcement of significant spending plans. Southwest Airlines reported lower quarterly profits due to soaring jet fuel prices. American Airlines is projecting a possible full-year loss while struggling with rising operational fuel costs. The airline sector is navigating a turbulent period driven by persistent increases in fuel prices. Both Tesla and the airline industry face significant challenges in their respective sectors.

NY Comptroller urges AI transparency on workforce impact

New York State Comptroller Thomas P. DiNapoli urged companies in the New York State Common Retirement Fund's portfolio to increase transparency around AI impacts. He called for open disclosure on how much AI use affects layoffs, entry-level jobs, and long-term business growth. AI is rapidly reshaping how companies operate and compete, driving hiring decisions and workforce size. DiNapoli noted that the SEC found AI disclosures across public companies remained uneven and inconsistent. Research suggests that automating tasks rather than augmenting human judgment can undermine institutional knowledge. He cited comments from Anthropic's CEO warning that AI could eliminate half of all entry-level white-collar jobs. Investors need to see risks just as clearly as rewards to assess long-term value.

Okta stock rises after analyst upgrades on AI security

Okta received analyst upgrades from Raymond James and Barclays citing progress toward profitability and expanding role in AI-related solutions. These endorsements highlight Okta's push into managing AI-driven agents and strengthening its identity platform. The launch of Okta for AI Agents and its Secure Agentic Enterprise blueprint looks most tied to this renewed analyst confidence. It provides a concrete product path for governing AI agents and nonhuman identities. Okta's narrative projects $3.8 billion revenue and $453.3 million earnings by 2029. Some optimistic analysts penciled in about $4.0 billion in revenue and roughly $576.7 million in earnings by 2029. Competitive pressure from integrated suites remains the biggest risk for the company.

Salesforce price target cut due to rising AI competition

Piper Sandler revised its outlook on Salesforce, reducing its price target from $250 to $215 while maintaining an Overweight rating. The firm cited a difficult competitive landscape in the enterprise software market due to rising AI competition. While Salesforce remains a leader in customer relationship management, increasing adoption of AI technologies by competitors poses significant challenges. The firm highlighted that Salesforce's strong market position and innovative product offerings continue to drive growth. Despite the reduced price target, Piper Sandler remains optimistic about Salesforce's long-term prospects. Investors are advised to monitor the company's performance closely as it navigates the evolving landscape of enterprise software. The revised price target reflects the need for a more conservative valuation due to competitive pressures.

Sources

• EssilorLuxottica sales slide as investors turn wary of AI glasses
• EssilorLuxottica sales slide as investors turn wary of AI glasses
• EssilorLuxottica sales slide as investors turn wary of AI glasses
• EssilorLuxottica sales slide as investors turn wary of AI glasses
• EssilorLuxottica sales slide as investors turn wary of AI glasses
• EssilorLuxottica sales slide as investors turn wary of AI glasses
• Applied Digital signs $7.5 billion AI data center lease with US hyperscaler
• Applied Digital Announces New U.S. Based High Investment-Grade Hyperscaler Tenant at Delta Forge 1, a 430 MW AI Factory Campus
• Investors continue to punish ServiceNow despite strong earnings and CEO McDermott’s forecast of blistering growth in AI product sales
• NOW Q1 Deep Dive: AI Investment Drives Growth, Margins Face Near-Term Pressure
• Arm, At Heart Of The AI Megatrend, Leads 12 Hot Prospects To Best Stock Watchlists
• Meta to cut 8,000 jobs, Microsoft offers buyouts to to staff as AI spending costs hit Big Tech workers
• Datavault AI Patents Target Quantum Data Security And Tax Tokenization Potential
• Tesla's AI Ambitions and Airline Earnings Challenges
• Investors need clarity on AI’s workforce impact, says NY State Comptroller DiNapoli
• Okta (OKTA) Is Up 16.9% After Analyst AI-Security Upgrades Has The Bull Case Changed?
• Salesforce, Inc. (CRM) PT Reduced as Piper Sandler Flags Rising AI Competition in Enterprise Software