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Coty Inc. (COTY) Exits Wella in a $750 Million Agreement with KKR

Coty Inc. (NYSE:COTY) is among the 7 Best Beauty Stocks to Buy Right Now.

On December 19, 2025, Reuters reported that Coty Inc. (NYSE:COTY) had sold the remaining 25.8% of the hair care business Wella to KKR for $750 million. The corporation retains 45% of the proceeds from any future sale or IPO, after KKR’s preferred return is satisfied. The majority of the upfront funds will be used by the business to pay off debt. The transaction concludes a portfolio streamlining program that began in 2020. Earlier, the company began a strategic evaluation of its beauty division, which could result in sales of brands including CoverGirl and Rimmel.

Following the announcement of CEO Sue Nabi’s resignation, Evercore ISI downgraded Coty Inc. (NYSE:COTY) from Outperform to In Line with a $7 price target, as reported by TheFly on December 23, 2025. As stated by analyst Robert Ottenstein, the corporation’s investment thesis relied heavily on Nabi. Evercore claimed that despite the shares’ undervaluation, it is currently unable to see the timing and triggers for a possible value unlock. The firm forecasts that outperformance is unlikely and anticipates that the stock will continue to be cheap.

Coty Inc. (NYSE:COTY) was downgraded by Grupo Santander from Outperform to Neutral with a price target of $3.50. The CEO replacement may prolong the company’s “transition phase,” according to analyst Mariano Szachtman. Santander noted that one of the main reasons for the downgrade was the change in leadership. The firm also observed Evercore ISI downgraded Coty Inc. (NYSE:COTY) in response to the same news as mentioned above in detail.

Coty Inc. (NYSE:COTY) is a globally recognized beauty company that derives 65% of its revenue from premium beauty goods (mainly fragrances) and 35% from mass makeup, skin care, and fragrances.

While we acknowledge the risk and potential of COTY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than COTY and that has 10,000% upside potential, check out our report about this cheapest AI stock.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

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Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

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