Squawk on the Street AI Valuation Fears, McDonalds Rises Despite Q3 Miss, Mamdani and Dems' Big Election Night 11/5/25
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Nov 5, 2025 Tensions rise as investors react to AI stock valuations following a major sell-off. McDonald's surprises with positive sales growth despite missing quarterly targets. The discussion heats up around significant Democratic election victories, including a surprising mayoral win in NYC. Meanwhile, attention shifts to Elon Musk's massive pay package awaiting a shareholder vote and Bitcoin's surprising drop below $100,000. The bidding war between Novo Nordisk and Pfizer for MetSera adds another layer of intrigue to the mix.
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AI Trade On Pause, Not Over
- The AI trade faced a rapid, valuation-driven pause after volatile moves in names like Palantir and NVIDIA.
- Jim Cramer and others view the pullback as a pause, not the end, because fundamentals and demand still exist.
Use Value Deals To Drive Traffic
- McDonald's cut prices and leaned into value items to drive traffic despite weaker consumer segments.
- Replicate value-focused promotions to win price-sensitive customers and sustain same-store sales.
Bifurcated Consumer Behavior
- McDonald's highlighted a bifurcated consumer: lower-income traffic down double-digits, higher-income spending up strongly.
- That split suggests broader consumption is uneven and price sensitivity is rising among lower-income diners.