Amazon's new record and resilient McDonald's: what's happened on the US market this week
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US markets were lower this week as investors questioned the sustainability of the AI technology boom and high valuations of key stocks.
The slowdown in the broader market did not stop the continued stream of AI-related deals.
Amazon announced a multi-year strategic partnership with OpenAI valued at up to $38 billion to supply cloud infrastructure including thousands of Nvidia’s chips. It is OpenAI’s first major cloud deal outside its long-standing partnership with Microsoft.
Amazon shares gained more than 4% to reach a new all-time high of $256.50.
Snapchat shares jumped 20% on 6 November after revealing a $400 million cash and equity deal with Perplexity AI to integrate the start-up’s artificial intelligence chatbot into the social media’s search engine.
US services activity rebounded in October with the PMI (purchasing managers’ index) coming in at an eight-month high of 52.4, which was higher than the 50.8 expected by economists.
Private sector payrolls also increased more than expected to 42,000 in October from a revised 29,000 decline in the prior month, reflecting some stabilisation in the jobs market.
McDonald's
The casual dining space is not looking too healthy right now, but hamburger chain McDonald's bucked the wider downturn with it third-quarter earnings.
The likes of Wingstop, Cava and Chipotle Mexican Grill have reduced sales forecasts for the remainder of 2025 as pressures on household budgets mean lower-income Americans increasingly dine at home.
For its part, McDonald’s has leant on new menu items and promotions to keep customers coming through the doors and has managed to get diners to spend more at each visit in the US. Like-for-like sales in its domestic market were up 2.5% against the 2.2% which had been anticipated.
Sales at global outlets which have been open at least a year rose 3.6% year-on-year in the quarter, with revenue up 3% to $7.08 billion (a smidge below the consensus forecast of $7.09 billion) with earnings per share also a smidge below the estimated $3.32 at $3.22.
Kenvue/Kimberly-Clark
Kimberly-Clark announced an agreed takeover of Kenvue on 3 November in a share and cash deal valued at $48.7 billion including debt in one of the biggest mergers of 2025 so far.
The deal creates a much larger consumer staples company with brands like Huggies and Kleenex sitting alongside Tylenol and Band, as part of a portfolio of 10-billion-dollar brands.
Kenvue has struggled since being demerged from parent Johnson & Johnson in 2023 with the shares down by around a third, which has attracted activist investors who have pushed for changes, including a possible sale.
The shares also came under more pressure in late October 2025 after the Trump administration made an unsubstantiated link between pregnant women taking its pain relief pill Tylenol with autism in children.
That has added possible litigation risk for Kimberly-Clark shareholders after the state of Texas recently sued Kenvue over autism links.
It partly explains the negative share price reaction with Kimberly-Clark shares falling as much as 14% after the merger announcement while Kenvue shares moved 12% higher. The implied 46% share price premium has also proved a hard pill to swallow.
Metsera
Weight loss drug developer Metsera saw its shares jump 22% to $77.12 this week after the biotech firm revealed it had received sweetened offers from Pfizer and Danish obesity drug maker Novo Nordisk.
The escalating bidding war follows the proposed acquisition of Metsera by Pfizer announced on 22 September 2025, which was comprised of $47.50 in cash and $22.50 in contingent rights tied to regulatory milestones, for a total offer value of $70 per share.
Novo Nordisk increased the stakes by offering approximately $86.20 per share, comprised of an upfront cash payment of $62.20 per share and a contingent payment of $24 per share.
In return for the upfront cash payment Metsera would issue non-voting shares to Novo equivalent to a 50% stake in the business.
After initially trying to block Novo’s proposal through the courts on competition grounds, Pfizer matched the Danish firm’s offer, according to the Financial Times.
Metsera shares are up 214% since joining the stock market in February 2025.
Martin Gamble: Shares and Markets Writer
Martin Gamble is Shares and Markets writer at AJ Bell. He was previously the Education Editor of Shares Magazine. He has been with the business since 2019.
Martin graduated from the University of Kent in...
