Key Points
Palantir topped Wall Street’s expectations and issued better-than-expected guidance.
Pizza Hut’s parent company, Yum! Brands, said it will explore strategic options for the chain.
Kimberly-Clark is buying Kenvue in a $48.7 billion deal.
The Trump administration will use contingency funds to pay 50% of SNAP benefits during the government shutdown.
Nearly two dozen state attorneys general sued the administration over its new Public Service Loan Forgiveness (PSLF) rule.
Starbucks announced a $4 billion joint venture with Boyu Capital to revive its China business.
Palantir’s Popcorn Moment: Strong Earnings and Bold Guidance
As the earnings season for tech companies continued, Palantir Technologies beat Wall Street’s predictions for both revenue and earnings in the third quarter. The company also gave investors positive forecasts for the current quarter, which made them more confident even though the economy as a whole is uncertain.
Palantir, known for its data analytics and AI tools used by corporate and government clients, credited its success largely to the expanding role of artificial intelligence in its operations. Analysts had predicted that the company would make $1.19 billion in Q4, but they think they will make $1.33 billion instead (LSEG).
Despite the strong performance, Palantir’s stock fell more than 7% in extended trading, even after an initial post-earnings rise. The company’s shares have soared nearly 170% this year, reflecting sustained investor interest in AI-driven tech.
CEO Alex Karp struck a defiant tone during the earnings call, dismissing critics by saying, “Enjoy, get some popcorn, they’re crying.” He also discussed pressing U.S. social issues, including fentanyl overdoses and the company’s controversial work with U.S. Immigration and Customs Enforcement (ICE).
Elsewhere in tech, Amazon hit a record high after announcing a $38 billion deal with OpenAI, pushing its shares up 14% in just two sessions. Meanwhile, Uber’s stock slipped 4% pre-market, despite the company surpassing Q3 revenue estimates.
Pizza Hut’s Uncertain Future: Yum! Brands Explores Options
The parent company of Pizza Hut, Yum! Brands, revealed plans to explore strategic options for the struggling pizza chain — signaling that a potential sale may be on the table.
Yum! Brands, which also owns KFC and Taco Bell, has not set a deadline for the review. CEO Chris Turner stated, “Pizza Hut’s performance indicates the need to take additional action to help the brand realize its full value, which may be better executed outside of Yum! Brands.”
The move follows declining Pizza Hut sales after a pandemic-era boom, as reported by CNBC’s Amelia Lucas. Yum! Brands also reported better-than-expected Q3 revenue, though the broader consumer picture continues to show signs of a “K-shaped” recovery, where spending power is uneven across income levels.
Kimberly-Clark Buys Kenvue in a $48.7 Billion Mega Deal
In one of Wall Street’s largest deals of the year, Kimberly-Clark announced it will acquire Kenvue, the maker of Tylenol, Band-Aid, and Neutrogena, for $48.7 billion.
With well-known names like Huggies, Kleenex, and Neutrogena all under one roof, the purchase could create a new consumer goods powerhouse. However, the market reacted cautiously — Kimberly-Clark shares dropped 14%, while Kenvue’s stock surged 12% after the announcement.
The deal comes on the heels of controversy surrounding Tylenol, after President Donald Trump made unverified claims about acetaminophen use during pregnancy and autism risk. Kimberly-Clark CEO Mike Hsu told CNBC that while sales were “slightly affected,” the brand remains “resilient.”
SNAP Funding and Student Loan Policy Face Legal and Political Battles
The Trump administration announced that it would utilize contingency funds to cover 50% of SNAP benefits for November amid the ongoing government shutdown, now poised to tie the record for the longest in history.
The move follows a Rhode Island judge’s ruling preventing the administration from halting SNAP payments entirely.
Meanwhile, a coalition of nearly two dozen state attorneys general filed a lawsuit in Boston federal court challenging the administration’s new Public Service Loan Forgiveness (PSLF) rule. The rule tightens the definition of qualifying employers, excluding organizations the Education Department deems as engaging in “unlawful activities,” a move critics say will unfairly impact nonprofit workers and public servants.
Starbucks’ New Brew: Joint Venture in China
Starbucks launched a big partnership with Boyu Capital, an alternative asset management business, even though sales in China are still not very good.
Under the $4 billion agreement, Boyu will take up to a 60% stake, while Starbucks retains 40%, with the deal expected to close in the second quarter of fiscal 2026.
Starbucks’ China business, which is worth more than $13 billion, has been having a hard time because of the pandemic and tough competition from Chinese companies like Luckin Coffee. To get back some of the market share it lost, Starbucks has started special programs and other ways to get people to come back to its stores.
Conclusion
This week’s business news shows that the business world is changing quickly. Examples include Palantir’s positive earnings driven by AI, Kimberly-Clark’s acquisition that will change an industry, and Yum! Brands’ strategy shake-up. Investors are closely watching for the next big move that could set the market’s direction going into 2025. Policymakers, consumer brands, and IT companies are all altering their business practices, which is the reason for this.