Landreaux Laura R sold $595K of ETR

Entergy claims Google's Arkansas solar payments could total $2.1B over 20 years, correcting earlier figures. Alphabet (GOOGL) and Entergy (ETR) highlight power infrastructure's role in AI compute. Alphabet's long-term energy commitments secure capacity, while Entergy gains a large customer. Both companies face risks, including regulatory scrutiny and counterparty exposure. Hedge fund holdings and short interest data are provided.

Alphabet Inc. (GOOGL) agreed to pay $716 million for solar and grid upgrades in Arkansas, benefiting Entergy Corporation (ETR). The deal highlights electricity costs as a potential constraint on AI growth. Entergy stands to gain from expanded rate base, while Alphabet faces long-term power obligations. Hedge funds increased stakes in both companies, with short interest in Entergy at 4.36% of float.

Google will pay Entergy Arkansas $526 million to build a solar project for its West Memphis data center. A court fight ensued after documents were released, with Entergy seeking to block news outlets from publishing the information, claiming it contains confidential business details. The total cost of the solar and battery facility is $1.6 billion, with Google covering about one-third. Entergy also requested the destruction of any copies of the disclosed information.

Entergy (ETR) reported Q2 2026 earnings of $1.03 per share, exceeding expectations but slightly below last year. The company reaffirmed its 2026 guidance and long-term growth targets. Shares have returned 12.67% year-to-date and 23.04% over the past year, with long-term returns of 147.13% and 123.81% over three and five years, respectively. Analysts debate its valuation, with some seeing it as undervalued at $105.75 and others noting its high P/E ratio of 27.5x.

Entergy (ETR) reported Q2 2026 earnings of $1.03 per share, beating estimates but slightly down year-over-year. The company reaffirmed its 2026 adjusted earnings guidance. Shares have risen 12.67% year-to-date to $105.75, with a 23.04% total shareholder return over the past year. Analysts debate its valuation, with one narrative suggesting a 13.2% undervaluation at a fair value of $121.88, while another notes its P/E ratio is above industry peers.

Entergy (ETR) shares fell 1.4% since its last earnings report, despite Q2 2026 earnings of $1.03 per share beating estimates. Revenue rose 5.9% YoY to $3.52B, but missed consensus. The company faces higher costs and financing pressures but reaffirmed its 2026 adjusted earnings guidance of $4.25-$4.45 per share. Analysts have a mixed outlook, with estimates trending downward.