Core Insights - Amazon has signed a significant $38 billion deal with OpenAI, providing access to its Amazon Web Services infrastructure, marking a major partnership in the tech industry [1] - OpenAI's shift to Amazon indicates a diversification from its previous reliance on Microsoft for cloud services, potentially signaling its readiness for an initial public offering [2] - Following the announcement, Amazon's stock surged to a record high, reflecting positive investor sentiment towards Big Tech, while the broader market showed mixed results [3] Company Developments - The $38 billion deal with OpenAI represents a strategic move for Amazon to enhance its cloud service offerings and solidify its position in the AI sector [1] - OpenAI's decision to partner with Amazon suggests a strategic pivot towards operational independence and maturity, moving away from exclusive reliance on Microsoft [2] Market Reactions - Amazon's shares reached a record high after the announcement of the deal, indicating strong investor confidence in the company's future prospects [3] - Despite gains in major indices like the S&P 500 and Nasdaq Composite, over 300 stocks in the broader market declined, highlighting a narrow performance among tech giants [4]

Core Viewpoint - Concerns regarding market cap concentration in the Magnificent Seven are dismissed, with emphasis on their shared high growth rates rather than product offerings [1] Group 1: Market Performance - The Magnificent Seven, including Amazon, Alphabet, Meta, Apple, Microsoft, Nvidia, and Tesla, are highlighted as major market players, with Nvidia achieving a $5 trillion valuation [1] - The tech-heavy Nasdaq Composite index showed positive movement, indicating ongoing investor interest in tech megacaps [2] Group 2: Company-Specific Insights - Amazon's stock surged 10% following a strong quarterly report, particularly due to growth in its AWS cloud division, and added another 4% after announcing a $38 billion deal with OpenAI [3] - Despite their large market caps, companies like Amazon are noted for delivering some of the best growth, making them resilient investments amid macroeconomic challenges [4]

Core Viewpoint - Kimberly-Clark's acquisition of Kenvue, the maker of Tylenol, is expected to create shareholder value despite scrutiny surrounding Tylenol's safety claims [1][3]. Group 1: Acquisition Details - The acquisition deal is valued at $48.7 billion, aiming to form one of the largest consumer staple companies globally [3]. - Kenvue is known for other brands such as Neutrogena, Listerine, and Band-Aid, in addition to Tylenol [3]. Group 2: Market Reaction - Following the announcement of the acquisition, Kimberly-Clark's stock fell by 14.57%, while Kenvue's stock rose by over 12% [4]. Group 3: Sales Impact - Tylenol sales have experienced some impact due to claims linking acetaminophen to autism, but the effect is less significant than anticipated [2]. - The brand is described as resilient, with consumers continuing to respond positively to its effectiveness and safety [2][3].

Core Insights - Starbucks is forming a joint venture with Boyu Capital to operate its locations in China, with Boyu paying approximately $4 billion for a 60% stake [1][2] - Starbucks values its China business at over $13 billion, which includes the sale of the controlling stake and future licensing fees [2] - Starbucks has over 8,000 locations in China, making it the company's second-largest market after the United States [3] Business Performance - Starbucks has experienced a decline in sales in China due to the pandemic, government restrictions, and increased competition from rivals like Luckin Coffee [4][5] - The company’s weak performance in China has negatively impacted its overall financial results [5] - The economic slowdown in China and competition from local brands have prompted U.S. companies to reconsider their strategies in the market [5] Industry Context - Other companies in the food and beverage sector are also adjusting their strategies in China, with Burger King's parent company divesting its struggling business while McDonald's increased its stake in its China operations [6]

Core Insights - Palantir Technologies Inc. reported quarterly results that exceeded analysts' expectations, driven largely by artificial intelligence, leading to a 3% increase in stock price during extended trading [1] - The company provided optimistic guidance for the fourth quarter, expecting revenues of approximately $1.33 billion, surpassing the $1.19 billion forecast by analysts [1][4] Financial Performance - Earnings per share were reported at 21 cents, compared to the expected 17 cents, while revenues reached $1.18 billion, exceeding the anticipated $1.09 billion [1] - Total revenue for the quarter increased by 63% year-over-year, reaching over $1 billion for the second consecutive quarter, with net income more than tripling to $475.6 million [4] - For the full year, Palantir anticipates sales of about $4.4 billion, exceeding the Wall Street forecast of $4.17 billion, and has raised its free cash flow outlook to between $1.9 billion and $2.1 billion [4] Business Segments - Revenue from Palantir's government business grew by 52% year-over-year to $486 million, with military contracts being a significant contributor [2][3] - The commercial business more than doubled to $397 million, with total contract value for commercial deals quadrupling to $1.31 billion [5] Market Position and Stock Performance - Palantir's stock has surged over 170% this year, pushing its market capitalization past $490 billion, making it one of the most valuable technology companies globally [6] - The company has faced criticism regarding the use of its tools by government agencies, but it continues to secure significant contracts, including a deal worth up to $10 billion with the U.S. Army [3][7] Investor Sentiment - Retail investors have played a crucial role in driving Palantir's stock price, with CEO Alex Karp addressing concerns from analysts regarding the stock's high valuation relative to other technology giants [6][7]

Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. Market moves: The S & P 500 was slightly higher to start the week, but most of the gains were concentrated in AI-related technology stocks and the Magnificent Seven — especially Amazon, after it struck a multiyear deal with OpenAI worth $38 billion of compute capacity. The Nasdaq , with a heavier weighting in tech, was modestly higher. Th ...

Lisa Cook, governor of the US Federal Reserve, during the Thomas Laubach Research Conference hosted by the US Federal Reserve Board of Governors in Washington, DC, US, on Friday, May 19, 2023.Federal Reserve Governor Lisa Cook, in her first policy speech since President Donald Trump tried to remove her from office, said Monday that she supported the recent interest rate reduction and indicated she would be open to more.Since Trump made his move in August to sack Cook on accusations of mortgage fraud, she ha ...

Company Overview - Lambda Inc. announced a multibillion-dollar deal with Microsoft for AI infrastructure utilizing tens of thousands of Nvidia chips [1][2] - The specific dollar amount of the deal was not disclosed [3] Industry Insights - The agreement is a response to the increasing consumer demand for AI-powered services, such as chatbots and assistants [2] - CEO Stephen Balaban highlighted that the industry is experiencing significant growth, describing it as "probably the largest technology buildout that we've ever seen" [2] - The partnership between Lambda and Microsoft continues a long-term relationship that dates back to 2018 [2]

Core Points - Tesla is under investigation by U.S. federal auto safety regulators regarding potential safety defects related to its retractable door handles [1][2] - The National Highway Traffic Safety Administration (NHTSA) has received multiple complaints from Tesla owners about issues with entering and exiting their vehicles due to door handle malfunctions [2] - Reports indicate that some Tesla Model Y vehicles from the 2021 model year have experienced inoperative door handles due to low 12VDC battery voltage [3] Group 1 - Tesla has been ordered to provide records to comply with a federal investigation into safety defects [1] - The NHTSA initiated a probe in September after receiving complaints about door handle functionality [2] - Complaints include incidents where children were trapped inside vehicles, necessitating emergency interventions [2] Group 2 - As of October 27, 2025, NHTSA's Office of Defects Investigations reported 16 cases of door handles becoming inoperative in certain 2021 Model Y vehicles [3]

Every weekday the CNBC Investing Club with Jim Cramer holds a "Morning Meeting" livestream at 10:20 a.m. ET. Here's a recap of Monday's key moments. 1. The S & P 500 was flat Monday. The tech-heavy Nasdaq advanced on another rally in shares of Amazon , which secured a $38 billion cloud commitment from OpenAI. The deal was a good omen for Jim Cramer, who opposes the narrative that investors should get out of "Magnificent Seven" stocks because the market is too heavily concentrated in the cohort. "I feel good ...