WARNING: MAJOR SPOILERS ahead for the Alien: Earth season 1 finale.
The ending of Alien: Earth episode 8, "The Real Monsters," finds Wendy taking control of Neverland Island from Boy Kavalier and the remaining Prodigy personnel. With several alien species at large, including Wendy's pet Xenomorph and the eyeball monster using Arthur's corpse as a host, the power has completely shifted into the hands of the hybrids.
Morrow seemed to have the upper hand in Alien: Earth episode 7 before he was subdued by Kirsh, who was also injured in the process. Ultimately, Slightly took revenge on Morrow by knocking him unconscious, while Smee took the broken Kirsh into custody, and Wendy overrides Atom's motor functions after learning he's a synth.
Meanwhile, Curly, or Jane, took out the Prodigy soldier Rashidi after Siberian was killed by one of the aliens, and Nibs takes revenge on Dame Sylvia, all while Joe watches on apprehensively. All this occurs as Yutani's reinforcements approach Neverland, where they will surely find an unexpected power shift at the start of Alien: Earth season 2.
Wendy & The Lost Boys Rule Neverland In The Season 1 Finale

By the end of the first season of Hulu's masterful sci-fi series, Wendy has stripped Boy K of his power on his own island. Driven by the need to balance the scales of power between Prodigy and its most advanced creations, Wendy leads a radical revolt against her makers, unable and unwilling to see them in any sort of parental or authoritative light.
Wendy does appear to be somewhat intoxicated by her own power in the final frame of the Alien: Earth season 1 finale, which Joe seems to take note of in the background of the scene. Joe is still considered one of the Lost Boys after he shot Nibs in the previous episode, although he is notably the only human among them, and therefore the most vulnerable.
Wendy's identity crisis in the final episode of Alien: Earth season 1 also raises interesting questions that should be tackled in season 2, such as whether she is Marcy, Wendy, or something completely new. The other hybrids, particularly Slightly and Smee, seem to be able to retain their original human youthfulness, but Wendy appears truly altered after her season-long power trip.
What Wendy's Takeover Means For Boy Kavalier & Prodigy

Boy Kavalier's life is now in Wendy's hands, along with that of the only other surviving human in the Prodigy holding cell, Dame Sylvia. Atom and Kirsh are still alive but easily manipulable by Wendy, rendering them effectively useless. It's unclear whether Wendy has that sort of power over Morrow, but out of all the captives, he seems to be the one most likely to ally with Wendy.
Slightly would almost certainly prevent an alliance from happening after Morrow had toyed with him most of the season, and Morrow's loyalty still lies with Yutani. The reinforcements could do some more damage to at least retrieve Morrow, and perhaps an alien species or two, back into Yutani's hands, but that would only extend the fight for possession of the aliens. Boy K has no true allies in this fight, and it doesn't seem like Wendy knows what to do with him yet.
Is Atom Eins Boy Kavalier's Synth Dad?

Ade Edmondson as Atom Eins. standing next to some prosthetic heads in Alien: Earth Episode 4
Boy K revealed to Wendy and the Lost Boys that he had his father killed and replaced by the first-ever synth that he created when he was only 6 years old. Later in the finale, Atom Eins is revealed to be a synth, suggesting that he is the "daddy" that Boy K had been talking about.
It's never said outright in the Alien: Earth season 1 finale, but the way that this information is sequentially peeled back is a good indication that Atom is Boy K's "dad." This is also implied when Boy K looks at Atom after Wendy calls him "a mean, angry little man," asking him, "Are you gonna let her talk to me like that?".
How Alien Earth's Season 1 Finale Sets Up Season 2

With the "plant monster" and the "eye thing" still at large on Neverland Island, and Wendy's pet Xenomorph on standby, things are not looking good for Boy K, Dame Sylvia, Atom, Kirsh, and Morrow. While Morrow has his own agenda with Weyland-Yutani, whose ships are approaching the Prodigy-owned island in the final moments of the finale, he's in the same boat as the rest of the Prodigy personnel for the time being.
Since Alien: Earth is a prequel, we are able to estimate some developments for season 2. The aliens will likely be contained or killed on Neverland Island, brought back into outer space, or contained at Weyland-Yutani's facility. An all-out alien outbreak on Earth does not appear to be in the cards.
The most intriguing development in Alien: Earth season 2 will be finally hearing the eye alien speak, even though it would be tragic and eerie through Arthur's dead body. This was one of the several small cliffhangers at the end of Alien: Earth that will need to be resolved in season 2.
Wendy holds all the cards in the Alien: Earth season 1 finale, but she will likely be tested even further in various physical and psychological ways. Her relationship with Joe is slightly strained but still intact, and she will have to determine what type of "ruler" she plans to be, if she is actually given the chance.
If he's really the genius he keeps claiming to be, Boy K could still have one trick up his sleeve, such as some type of emergency kill switch for Wendy and the hybrids. If Alien: Earth gets picked up for a second season, creator Noah Hawley will surely find ways to keep expanding Wendy's story while keeping the classic monster horror scenes coming.
