Business
China's factory activity contracts for 7th month amid tariff pressure, trade war truce offers hope
China's factory activity contracted for the seventh consecutive month in October, with the official manufacturing purchasing managers index slipping to 49 from 49.8 in September, worse than forecast. A PMI reading below 50 indicates contraction, reflecting pressure from higher U.S. tariffs and sluggish domestic demand, according to China's National Bureau of Statistics. On Thursday, U.S. President Donald Trump announced a tariff truce after meeting with Chinese leader Xi Jinping in South Korea, cutting fentanyl-related tariffs from 20% to 10%, reducing total U.S. tariffs on Chinese goods from 57% to 47%. This offer has sparked hope for stronger export recovery. Exports to the U.S. have dropped by double-digits for six straight months, while China has been diversifying exports to regions including Southeast Asia and Africa. HSBC economist Taylor Wang noted that the tariff cut allows Chinese exports to "regain more competitiveness in the U.S. market" and could lead to recovery of direct U.S. exports. However, BNP Paribas Securities China's Wei Li cautioned that despite the tariff truce progress, "global uncertainty continues affecting manufacturing sentiment." Li added that U.S.-China agreements will "likely prevent further deterioration rather than drive a robust recovery." China's eight-day Golden Week national holiday contributed to slower factory activity, along with a "more complex international environment" and a prolonged downturn in the property market weighing on consumer confidence.
Apple Reports Fiscal Fourth Quarter Earnings, Beats Estimates with $102.5 Billion in Revenue
Apple reported its fiscal fourth quarter earnings, beating estimates with $102.5 billion in revenue, an 8% year-over-year increase. The company's EPS grew 13% year-over-year to $1.85. However, sales in China decreased from the year-ago period, missing estimates. The iPhone generated $49.02 billion in revenue, slightly missing Wall Street's estimates of $49.33 billion. Apple's services revenue reached an all-time high of $28.75 billion, up from $25 billion in the same quarter last year. The company expects total revenue to increase 10-12% year-over-year in the holiday quarter, with iPhone sales growing double digits. Apple's CFO, Kevan Parekh, stated that the company is increasing its investments in AI, which will drive the increase in capital expenditures. CEO Tim Cook expects China revenue to return to growth in the holiday quarter and predicts the holiday quarter to be Apple's "best" yet. The company is also making progress on its overhauled Siri, expected to launch next year, and is "open to pursuing M&A" to advance its roadmap. Apple's stock rose 5% after hours, following the earnings report. The company's guidance for the holiday quarter includes a $1.4 billion tariff impact, which is expected to affect gross margin.
YouTube TV Drops Disney Networks Including ESPN and ABC After Failed Carriage Negotiations
YouTube TV has removed Disney-owned networks including ABC, ESPN, ESPN2, Freeform, FX, Disney Channel and dozens of others after the two companies failed to reach a new carriage agreement. The blackout began at 9 p.m. PT on Oct. 30 (12 a.m. ET on Oct. 31) following the expiration of their previous deal, though some users reported losing access earlier. The primary dispute centers on pricing, with Disney seeking rate increases that YouTube TV considers excessive. YouTube TV, which serves more than 10 million subscribers nationwide, will offer affected customers a $20 credit if the networks remain unavailable for an extended period. The removal means viewers have lost access to local ABC stations and major sports programming including NFL, college football, NBA and NHL games. Both companies exchanged accusations, with YouTube TV calling Disney's demands an attempt to force higher prices on customers while Disney criticized Google for refusing to pay fair market rates and using its dominance to undercut industry standards. Disney noted that YouTube TV is seeking better terms than those negotiated with other major distributors including Comcast and Charter. This dispute represents the latest in a series of carriage battles between Disney and various TV providers, following similar conflicts with Charter, DirecTV and Comcast in recent years. The companies remain open to resuming negotiations to restore Disney's programming to YouTube TV.
Apple Q4 earnings reveal early iPhone 17 demand, record revenue and mixed China results
Apple reported fourth‑quarter earnings on Thursday (ended September 27) that offered the first glimpse of iPhone 17 sales. The company posted record quarterly revenue of $102.5 billion, up from $94.9 billion a year earlier, while iPhone sales reached $49 billion, a rise from $46.2 billion but slightly below the $50.1 billion Wall Street had expected. Services revenue hit an all‑time high of $28.8 billion, up from roughly $25 billion in the prior year. CEO Tim Cook said Apple expects the December quarter to be “the best ever for the company and the best ever for the iPhone,” suggesting strong iPhone 17 momentum. The iPhone 17 lineup outsold its predecessor by 14 % in the first ten days in the United States and China, with the base iPhone 17 and iPhone 17 Pro Max driving the most demand; the new iPhone Air showed “muted” customer interest. Sales in China fell to $14.5 billion from $15 billion a year ago, but Cook said he anticipates iPhone revenue to return to growth there in the current quarter. Apple warned of $1.4 billion in tariff‑related costs for the upcoming quarter. Cook highlighted Apple Intelligence as a factor motivating upgrades and expressed optimism about AI opportunities on the App Store. Apple shares rose about 3 % in after‑hours trading.
Meta to Spend $70-72 Billion on AI This Year, Sparking Investor Concerns
Meta, the company led by Mark Zuckerberg, has announced plans to spend between $70 billion and $72 billion on artificial intelligence (AI) this year. This investment is up from the company's previous estimate of $66 billion to $72 billion. The significant expenditure has raised concerns among investors, with Meta's shares sliding by over 11% on Thursday. Despite the company's revenues exceeding Wall Street's estimates, investors are skeptical about Meta's ability to generate a return on investment from its AI spending. The AI industry is experiencing a surge in spending, with competitors such as Alphabet and Microsoft also increasing their investments. This has led to fears of a growing AI bubble that could have significant economic implications if it were to burst. Meta has been on an AI hiring spree, investing over $14 billion in AI startup Scale AI and poaching its CEO, Alexandr Wang. However, the company has also cut hundreds of roles from its AI unit, suggesting that there may be challenges ahead. Zuckerberg has emphasized the importance of investing in AI, stating that the company is seeing returns in its core business and wants to ensure that it is not underinvesting. However, investors are calling for more transparency and a clearer plan for generating a return on investment. As the AI industry continues to evolve, Meta's significant investment in AI will be closely watched by investors and industry observers.
Mortgage Rates Fall for Fourth Consecutive Week Amid Interest Rate Cut
Mortgage rates have decreased for the fourth week in a row, with the average rate on a 30-year fixed mortgage falling to 6.17% from 6.19% the previous week. This decrease comes after the Federal Reserve announced its second interest rate cut of the year, lowering the benchmark federal funds rate by 25 basis points to a range of 3.75% to 4%. The average rate on a 15-year fixed mortgage also declined, dropping to 5.41% from 5.44%. According to Freddie Mac's chief economist, Sam Khater, the lower rates have brought more homebuyers into the market. The decline in mortgage rates has provided relief for potential buyers and homeowners considering refinancing, with rates falling 87 basis points from their mid-January peak. However, the housing market remains challenging due to a softening labor market, economic uncertainty, and rising house prices. Despite this, the lower mortgage rates have boosted refinancing of existing home loans. The Federal Reserve's next policy meeting is scheduled for December 9-10, and Chairman Jerome Powell has stated that the Fed will proceed cautiously until it has a clearer view of the economy. The recent interest rate cut and decline in mortgage rates may open up opportunities for buyers looking to make a move before the end of the year, with stable home prices and growing inventory potentially making it easier for buyers to enter the market. Overall, the decrease in mortgage rates is a positive development for the housing market, but its impact will depend on various economic factors.
Nvidia Becomes World's First $5 Trillion Company as AI Boom Continues
Nvidia reached an unprecedented milestone on Wednesday, becoming the world's first company valued at $5 trillion, driven by surging demand for its AI chips. The achievement came just three months after the company crossed the $4 trillion mark, having taken about 13 months to advance from $3 trillion to $4 trillion. The chipmaker's shares rose 3% in early trading Wednesday, bringing its 2025 gains to approximately 50%. Nvidia has consistently ranked among the S&P 500's top-performing stocks for years as artificial intelligence investment fuels its meteoric rise. The stock received additional momentum from hopes that trade discussions between President Donald Trump and Chinese leader Xi Jinping could open China's market to Nvidia's high-end AI chips. CEO Jensen Huang delivered his first-ever keynote address at the company's GTC AI conference in Washington on Tuesday, presenting a vision where Nvidia chips would power everything from cell phone towers to robotic factories to self-driving cars. The milestone coincided with Apple also breaching the $4 trillion benchmark, signaling continued investor confidence in major tech companies despite concerns about AI market volatility. Recent announcements include a major partnership with OpenAI involving billions in chip purchases and a $100 billion Nvidia investment, plus a $5 billion investment in Intel. Nvidia executives estimate benefiting from up to $4 trillion in AI infrastructure spending by decade's end, though some analysts warn the AI market may be a bubble.
Amazon Smashes Q3 Forecasts as Ad Revenue Surges 24% to $17.7 Billion
Amazon reported blockbuster third-quarter results with $180.2 billion in net sales and $21.2 billion in net income, exceeding Wall Street expectations and achieving a 9.7% operating margin. Ad revenue was a standout, climbing 24% year-over-year to $17.7 billion. The company attributes this growth to robust sales across its seller/vendor platform, Prime Video ads, display advertising, and its demand-side platform (DSP). Amazon's DSP now enables advertisers to buy inventory on virtually every major streaming service, including Netflix, Disney+, HBO Max, Paramount+, Peacock, Tubi, and Fox One. The earnings release coincided with Amazon's announcement of cutting approximately 14,000 jobs, with HR leadership framing the reductions as necessary to adapt to the "most transformative technology since the Internet." However, a company source clarified that "AI is not behind the vast majority of reductions," stating the layoffs stem from an ongoing effort to streamline operations by reducing layers and increasing ownership. CEO Andy Jassy attributed the strong performance across divisions, including AWS reaccelerating to 20.2% YoY growth, to AI-driven improvements, highlighting new custom chips (Project Rainier), AI compute clusters, foundation models, and agent tools. The company also touted successful launches like NBA on Prime and strong ratings for Thursday Night Football as part of its broader media expansion.
Apple Reports Record Q3 Revenue of $102.5 Billion as iPhone 17 Series Revives Global Demand
Apple reported Thursday its best September quarter on record with $102.5 billion in revenue, beating Wall Street expectations of $102.24 billion and marking an 8% year-over-year increase. The strong earnings come just days after Apple reached a $4 trillion market valuation for the first time, making it one of only three companies worldwide to achieve that milestone alongside Nvidia and Microsoft. CEO Tim Cook announced that Apple achieved a September quarter revenue record for iPhone and an all-time revenue record for Services, despite what he described as slow progress on artificial intelligence initiatives. While overall iPhone sales remained strong, the company reported that its China smartphone revenue fell below Wall Street estimates, reflecting ongoing challenges in the Chinese market where sales had lagged projections. The new iPhone 17 and 17 Pro models have reinvigorated demand for Apple's products globally, with analysts noting that legacy products and services continue to drive solid revenue expansion. Apple also exceeded expectations for its "other products" and services revenue categories. Cook forecast 10% to 12% revenue growth for the current quarter ending in December, typically Apple's biggest sales period. iPhone revenue reached $49.03 billion compared to analysts' estimates of $50.19 billion. The company's stock rose slightly in after-hours trading following the earnings release. Despite lagging behind tech rivals like Meta, Google, and Microsoft in AI product releases, Apple's strong iPhone sales and recent product launches, including new AirPods with translation capabilities and Apple Watch upgrades, have driven a 50% increase in share price since April lows.
Eli Lilly's Weight Loss Drug Overtakes Keytruda as World's Best-Selling Medicine
Eli Lilly's tirzepatide has officially surpassed Merck's Keytruda to become the world's best-selling medicine. The therapy, marketed as Mounjaro for diabetes and Zepbound for obesity, generated $10.1 billion in third-quarter sales, bringing year-to-date revenue to $24.8 billion. In comparison, Keytruda earned $8.1 billion in Q3 with year-to-date sales of $23.3 billion. The achievement is remarkable considering tirzepatide's recent launch timeline - it was approved for diabetes in 2022 and obesity just last year, while Keytruda required nine years to reach top-seller status after its initial approval. Analysts predict tirzepatide will generate $32.2 billion for the full year compared to Keytruda's projected $31.8 billion. The rapid success underscores strong demand for GLP-1-based drugs and intensifying competition in the obesity market. Lilly is now widely viewed as having surpassed Novo Nordisk, despite Novo's earlier market entry with Ozempic and Wegovy, with tirzepatide showing potential for even greater weight loss results. Lilly also reported better-than-expected Q3 performance, with total revenue of $17.6 billion versus analyst predictions of $16.1 billion. The company raised its full-year sales guidance to $63-63.5 billion from $60-62 billion and increased adjusted EPS guidance to $23.00-23.70 from $21.75-23.00.
Mortgage Rates Too High to Restore Housing Affordability, Zillow and Berkshire Hathaway Say
Mortgage rates remain stubbornly high, with the 30‑year fixed rate now at 6.19%—well above the sub‑3% levels that drove a buying surge during the pandemic. In a recent analysis, Zillow economic analyst Anushna Prakash reported that mortgage rates would need to fall to 4.43% for a typical home to become affordable to the average buyer, but she called that level “currently unrealistic.” Even a 0% rate would not make a median home affordable in New York, Los Angeles, Miami, San Francisco, San Diego, or San Jose, she added. Berkshire Hathaway HomeServices echoed the sentiment in an early July report, calling mortgage rates one of the main deterrents for both buyers and sellers. The firm noted that many homeowners are reluctant to list their properties because they would have to give up the low rates they locked in years ago—a phenomenon known as “golden handcuffs.” This lock‑in effect is constraining inventory, with unsold completed builder inventory reaching a 16‑year high (ResiClub) and active listings climbing to 3.06 million, a 4.9% increase year‑over‑year (Parcl Labs). Homes are sitting on the market nearly three weeks longer than a year ago (Realtor.com), and the typical home spent 62 days on the market in July, roughly the same as pre‑pandemic levels (Realtor.com). Meanwhile, home prices have risen more than 50% since 2020, while wages have not kept pace, further eroding affordability. Alexandra Gupta, a real‑estate broker with The Corcoran Group, said many first‑time buyers are turning to long‑term renting or co‑living, and some rely on family help. A slight glimmer of hope appears in the latest Case‑Shiller data, which shows price growth slowing. Nicholas Godec of S&P Dow Jones Indices noted that affordability remains stretched but national home prices are holding steady. The article was originally published on July 31, 2025; Fortune Global Forum will convene Oct. 26–27, 2025 in Riyadh.
US-China Trade Deal Addresses Rare Earth Minerals Dispute
The US trade deal with China aims to resolve a major point of contention in their ongoing trade war: rare earth minerals. Despite previous talks, China had slowed down promises to free up crucial rare-earth metals, and earlier guarantees of expedited rare-earth licenses to US companies never materialized. Under the new deal, China agreed to roll back recently imposed rules, although initial restrictions from April appear to remain in place. Rare earths are 17 metallic elements found throughout the Earth's crust, but are difficult and costly to extract and process. They are essential for everyday technologies, including smartphones, wind turbines, and electric vehicles, as well as for the US military. China currently controls 92% of the global output in the processing stage, with 61% of mined rare earth production coming from the country. The US has one operational rare earth mine in California, but lacks the capability to separate rare earths after extraction. The Trump administration's tariffs on China in April derailed the process of sending rare earths to China for separation. Beijing's latest restrictions added five rare-earth elements to its control list, requiring export licenses, which could have a major impact on the US due to its heavy reliance on China for rare earths. Between 2020 and 2023, 70% of US imports of rare earth compounds and metals came from China. The dispute over rare earths has been a major topic of conversation between Xi and Trump, with China using rare earths as leverage in the trade war.
U.S.-China Tech War: Dutch Government Pressed to Return Nexperia After Washington Suspends Export Rule
The Dutch government is facing fresh pressure to surrender control of Nexperia after the United States agreed to pause its newly‑enforced “50 % subsidiary rule” for one year. The rule, introduced in late September, expands U.S. export restrictions to any company that is at least 50 % owned by entities on Washington’s trade blacklist. The pause follows Thursday’s meeting between President Xi Jinping and President Donald Trump, when China’s Ministry of Commerce announced that Washington would temporarily halt implementation of the rule. The Dutch seizure of Nexperia—during which CEO Zhang Xuezheng was ousted—was largely a reaction to the anticipated impact of the U.S. measure. Nexperia is a critical supplier of semiconductors for automotive, industrial, mobile and consumer applications, making the company a focal point in the broader tech rivalry. Chinese chip‑industry analyst Zhang Guobin commented that Beijing has found effective ways to counterbalance U.S. policies, citing the recent suspension of China’s new rare‑earth export controls as an example. The one‑year suspension is expected to complicate the geopolitical dispute and may force the Netherlands to relinquish its hold on the company.
Meta Platforms' Stock Drops 12% After $16B Tax Charge and Expense Guidance
Meta Platforms' stock has fallen 12% after the company reported a one-time charge of nearly $16 billion due to the implementation of President Donald Trump's OBBBA tax law. This charge significantly impacted the company's Q3 earnings. However, Meta expects lower taxes in subsequent years. The company also warned of higher expenses and capital investments in AI, particularly in 2026, which is expected to pressure operating income and free cash flow in the near term, leading to lower profitability. Despite this, several analysts have maintained their buy or overweight ratings for Meta stock, although they have cut their price targets due to caution around expense growth. Some analysts believe the stock now properly reflects the risk/reward post-decline, while others see the expense-driven selloff as a buying opportunity due to attractive valuation and strong core performance. Meta's current valuation is considered attractive by multiple analysts, driven by its discounted valuation, core business strength, and leadership in AI. The company's 26% year-over-year revenue growth and robust KPIs are notable strengths. Although there are concerns over ad dependence and higher spending, the stock is seen as compelling for medium- and long-term investors, trading at a significant discount to peers and enhancing its margin of safety.
Chipotle CEO sounds alarm on the American economy: Gen Z and millennials are too burdened by unemployment and student loans to eat out
Chipotle Mexican Grill CEO Scott Boatwright has identified young diners as a significant factor behind declining traffic, stating that customers aged 25-35 are cutting back on eating out due to unemployment, increased student loan payments, and slower wage growth. This demographic, encompassing millennials and Gen Z, isn't switching to competitors but reducing dining out altogether, resulting in lost sales to grocery spending. Chipotle cut its same-store sales forecast for the third consecutive quarter, with quarterly revenue missing expectations and traffic declining by 0.8%. Boatwright noted that customers making less than $100,000, who represent 40% of its consumer base, are also pulling back due to financial pressure. This trend reflects a broader "two-tier economy" in fast food. While high-income earners continue spending, lower-income consumers are tightening budgets. McDonald's CEO Chris Kempczinski described this phenomenon, noting affluent customers spending freely while middle and lower-income groups face a different economic reality. Boatwright addressed industry-wide efforts to attract Gen Z, including novelty sauces, citing research that over 90% of Gen Z would visit a restaurant for a new sauce. However, the underlying economic challenges are significant. Data supports Boatwright's assessment: a Redfin survey found 40% of Gen Z and millennial renters are eating out less to afford payments, with over 20% skipping meals. FICO reports Gen Z has experienced the steepest annual credit score drop since 2020, partly due to student loan resumption. Additionally, a JPMorgan Chase Institute report revealed that 25-29-year-olds had the lowest income growth over the past decade. Youth unemployment stands at approximately 10.5%, and a constrained job market ("job hugging") is hindering young people's ability to advance their careers and increase spending power, delaying homeownership and perpetuating financial strain.
Trump-Xi Meeting: China Leveraged Rare Earth Control to Gain Trade War Advantage, Experts Say
President Donald Trump agreed to concrete concessions in his meeting with Chinese President Xi Jinping Wednesday, including reducing tariffs on China by 10% for fentanyl flow, dropping a planned 100% tariff, and extending a pause on reciprocal tariffs for another year. China made more tentative offers, agreeing to pause export controls on rare earth minerals for one year while extending agricultural trade discussions and addressing TikTok issues. Experts concluded that Beijing successfully used its rare earth monopoly as leverage against Trump's trade policies, with Brookings Institution fellow Jonathan Czin calling it a "game of 'whack-a-mole'" orchestrated by China. Joe Mazur, a geopolitics analyst at Trivium China, said the negotiations represented "total vindication of China's strategy of never striking first but always striking back." While some experts viewed the meeting as preventing immediate escalation, others described it as "breathing room" rather than a breakthrough. Trump called the meeting "amazing" and rated it a "12" out of 10, while Beijing's response was more cautious about future cooperation prospects. The outcome essentially returned to pre-trade war conditions but positioned China in a stronger strategic position, according to analysts.
Stock Market Mixed as Futures Slip After Fed Rate Cuts, Big Tech Earnings Drive Major Moves
U.S. stock futures swung between gains and losses on Thursday following the Federal Reserve's recent rate cuts, with mixed performance across major benchmark indices. The market reaction comes after Fed Chair Jerome Powell cautioned Wednesday that another rate cut is "not a foregone conclusion—far from it," pushing back against market expectations that had built up in recent weeks. Big Tech earnings dominated premarket activity, with Alphabet Inc. (NASDAQ: GOOGL) (NASDAQ: GOOG) soaring 7.57% after beating third-quarter estimates with revenue of $102.35 billion and earnings of $2.87 per share. Meanwhile, Meta Platforms Inc. (NASDAQ: META) tumbled 7.39% despite upbeat earnings, with diluted earnings per share of $1.05 including a $15.93 billion non-cash tax charge. Microsoft Corp. (NASDAQ: MSFT) declined 2.78% following guidance that slightly missed estimates, while Amazon.com Inc. (NASDAQ: AMZN) was 0.50% lower ahead of its scheduled earnings release. Apple Inc. (NASDAQ: AAPL) shares gained 0.72% as analysts expect strong results after the closing bell. The meeting between President Donald Trump and President Xi Jinping yielded positive trade developments, including reduced U.S. fentanyl tariffs in exchange for China restarting substantial U.S. soybean imports and a settled deal on rare earths, with indications that a broader trade deal may come "pretty soon." Market futures showed the Dow Jones down 0.19%, S&P 500 up 0.03%, Nasdaq 100 up 0.06%, and Russell 2000 up 0.36%. Treasury yields were mixed, with the 10-year bond yielding 4.07% and the two-year bond at 3.59%. Commodities trading showed crude oil futures declining 0.63% to around $60.10 per barrel, while Bitcoin traded 2.01% lower at $110,746.25 per coin.
Google, Meta, Microsoft Boost AI Spending to Record $370B as Economy Reacts to Rate Cut
Google, Meta and Microsoft announced Wednesday that they will spend more than previously forecast on artificial‑intelligence infrastructure, pushing combined outlays by the four biggest tech firms to nearly $370 billion this year. Google’s CFO said the company will invest $91 billion‑$93 billion in AI, up from $85 billion; Meta’s spending will land at the high end of its $66‑$72 billion range and be “notably larger” in 2026; Microsoft expects its AI spending to grow beyond the $80 billion it had projected for 2025. The announcements came hours after the Federal Reserve cut interest rates, citing a softening labor market, highlighting the sector’s growing role in U.S. economic growth. The AI investment wave is already spurring broader economic activity: data‑center construction, trucking and energy firms are all seeing increased demand as firms race to power models like ChatGPT. Yet the spending spree has raised concerns that AI‑related expectations have inflated a financial bubble. Industry leaders, including Meta’s Mark Zuckerberg, acknowledge the risk of overinvestment but argue that front‑loading capacity is necessary to meet the “most optimistic cases” of a future “superintelligence.” Many AI products remain unprofitable, and a pullback could ripple through the broader economy. In parallel, the sector’s power needs are reshaping energy policy. Google said it will reopen a shuttered nuclear plant in Iowa; Microsoft struck a similar deal for the Three Mile Island plant in Pennsylvania; OpenAI has asked the White House to double annual new power generation to keep pace with China. Meanwhile, Nvidia briefly topped a $5 trillion market cap after President Trump suggested easing restrictions on its AI chips for China. Investors, including Deepwater Asset Management’s Gene Munster, remain confident the “AI trade” will persist despite bubble warnings.
Amazon to Report Q3 Earnings on Oct. 30 Amid Layoffs, AWS Outage
Amazon will release its third‑quarter financial results after the market closes on Thursday, Oct. 30, and hold an investor conference call at 5 p.m. ET. The call can be accessed on the company’s Investor Relations website. The earnings report comes just days after Amazon announced it is laying off roughly 14,000 workers—about 4 % of its 350,000‑person corporate workforce. This is the second round of cuts this year and affects teams in logistics, payments, video games and cloud computing. Chief Executive Officer Andy Jassy said the reductions are part of a broader shift to use more artificial‑intelligence tools to automate tasks traditionally performed by humans. Amazon also faces investor questions after a widespread AWS outage on Oct. 20 that disrupted services for high‑profile clients such as Snapchat and Ring; the company said the outage stemmed from an issue at its Northern Virginia data centers. Wall Street analysts expect the company to post earnings per share of $1.58 on revenue of $177.8 billion. AWS is forecast to generate $32.4 billion, an 18 % year‑over‑year increase from $27.5 billion last year, while online sales are projected at $67 billion and advertising revenue at $17.3 billion. In the prior quarter Amazon missed expectations with weaker operating income and slow cloud sales, and it guided Q3 operating profit between $15.5 billion and $20.5 billion on sales of $174 billion to $179.5 billion. Shares were up 0.46 % in after‑hours trading on Wednesday, Oct. 29.
Merck & Co., Inc. Announces Third-Quarter 2025 Financial Results
Merck & Co., Inc. reported its third-quarter 2025 financial results, with total worldwide sales of $17.3 billion, a 4% increase from the third quarter of 2024. Excluding the impact of foreign exchange, sales grew 3%. KEYTRUDA sales grew 10% to $8.1 billion, while WINREVAIR sales increased 141% to $360 million. The company also reported a decline in GARDASIL/GARDASIL 9 sales of 24% to $1.7 billion. Animal Health sales grew 9% to $1.6 billion. GAAP EPS was $2.32, and non-GAAP EPS was $2.58. The company raised its full-year 2025 financial outlook, expecting worldwide sales to be between $64.5 billion and $65.0 billion, and non-GAAP EPS to be between $8.93 and $8.98. Merck & Co., Inc. also announced the completion of its acquisition of Verona Pharma and the FDA approval of KEYTRUDA QLEX injection for subcutaneous use across all solid tumor indications.