The Rundown AMD Earnings Fail to Impress, Novo Nordisk Cuts Outlook Amid Obesity Drug Pricing Pressure
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Nov 5, 2025 Markets faced a sell-off, driven by a tech pullback and concerns over inflated AI valuations. AMD's quarterly results revealed strong revenue but disappointing profits. Novo Nordisk cut its outlook, grappling with pricing pressure for its weight-loss drug. Rivian surprised with profitability through a software joint venture, despite ongoing losses in auto sales. Pinterest missed earnings expectations, even as its user base grew, and plans to leverage AI for shopping. Plus, the economic impact of the NYC Marathon was discussed in depth.
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Tech-Led Pullback Signals Valuation Reappraisal
- Markets fell sharply on November 4th with tech leading the decline, signaling a broad pullback.
- The host suggests investors may be re-evaluating AI hype and frothy valuations after recent gains.
Revenue Growth Isn’t Enough Without Margins
- AMD posted strong revenue and AI-related data center growth but shares fell due to weaker profits and narrower margins.
- The market reaction suggests investors now weigh profitability and margins more heavily than revenue growth alone.
Big AI Ambitions Meet Short-Term Scrutiny
- AMD expects accelerating sales and forecasts its AI business could reach tens of billions by 2027, supported by major deals.
- Yet investors punished the stock because expectations for profit margins and immediate beats remain high after earlier gains.