markets

Claire Yubin Oh10/28/25

UPS spikes after reporting Q3 profits way ahead of expectations, as cost savings flow through to bottom line

UPS delivered a rosy set of results that sent the stock up as much as 17.7% in premarket trading on Tuesday, with the logistics giant’s cost-cutting efforts beginning to show results in its third-quarter profits.

The company’s adjusted earnings per share came in at $1.74 for the quarter, beating the $1.32 average analyst estimate compiled by Bloomberg. Revenue also topped expectations, coming at $21.4 billion, and UPS now expects ~$24 billion for Q4 — above prior expectations from analysts, who were penciling in $23.8 billion.

The company’s CEO, Carol Tomé, said in the press release:

“We are executing the most significant strategic shift in our company’s history, and the changes we are implementing are designed to deliver long-term value for all stakeholders. With the holiday shipping season nearly upon us, we are positioned to run the most efficient peak in our history while providing industry-leading service to our customers for the eighth consecutive year.”

Indeed, UPS has been on a large-scale turnaround plan lately, focusing on efficiency, after its demand was hit by tariff uncertainties and stiff competition. The company has trimmed down less profitable deliveries from Amazon and says it has cut a whopping ~34,000 jobs from its operational workforce so far this year, as of Tuesday. The company’s also closed or consolidated a number of packaging facilities, and says it is on track to achieve $3.5 billion worth of total cost savings in 2025, relative to last year.

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Matt Phillips15h

AI “bottleneck” stocks are the big winners halfway through a tumultuous week

Memory stocks and chip machinery companies are bouncing Wednesday, following a strong Oracle earnings report that bolstered confidence in the durability of the AI data center build-out.

In fact, Sandisk is the top performer of the S&P 500 so far this week, rising more than 21% from Friday’s close, as of shortly after 2 p.m. ET. Memory chip maker Micron is second in line, up more than 13% in weekly gains, and hard disk drive maker Western Digital is also getting a lift.

Other big winners so far this week are some of the so-called semicap shares — makers of the ultraprecise machines that turn silicon into actual semiconductors — with Lam Research and KLA Corp both racking up gains of about 10% on the week. Applied Materials is up about 8% this week.

Thematically speaking, both memory stocks like Sandisk and Micron as well as semicap shares like KLA have been part of the “buy the bottleneck” trade, in which investors buy companies they believe sit at key pinch points in the AI supply chain and therefore have pretty tremendous pricing power. Through that lens, the stocks’ bounce might reflect some additional excitement about the durability of the data center boom after Oracle’s results, which included a larger-than-expected capex number as well as sales guidances that was higher than Wall Street was forecasting.

But the bounce also may be the less interesting market phenomenon of mean reversion rearing its head, as these stocks were also some of the most beaten down in the S&P 500 last week, when Sandisk lost 17% and Lam lost about 15%, for example. So, some snapback may merely be a market reflex.

Oracle jumps after Q3 results exceed expectations, boost to sales guidance

Oracle jumps after Q3 results exceed expectations, boost to sales guidance

Other big winners so far this week are some of the so-called semicap shares — makers of the ultraprecise machines that turn silicon into actual semiconductors — with Lam Research and KLA Corp both racking up gains of about 10% on the week. Applied Materials is up about 8% this week.

Thematically speaking, both memory stocks like Sandisk and Micron as well as semicap shares like KLA have been part of the “buy the bottleneck” trade, in which investors buy companies they believe sit at key pinch points in the AI supply chain and therefore have pretty tremendous pricing power. Through that lens, the stocks’ bounce might reflect some additional excitement about the durability of the data center boom after Oracle’s results, which included a larger-than-expected capex number as well as sales guidances that was higher than Wall Street was forecasting.

But the bounce also may be the less interesting market phenomenon of mean reversion rearing its head, as these stocks were also some of the most beaten down in the S&P 500 last week, when Sandisk lost 17% and Lam lost about 15%, for example. So, some snapback may merely be a market reflex.

markets

Max Knoblauch17h

Papa John’s spikes following report of a $47-per-share take-private offer from Qatari investment fund Irth Capital

A few weeks after announcing it would close 300 stores by the end of next year, Papa John’s is drawing fresh take-private interest from Irth Capital, an investment fund backed by a member of the Qatari royal family.

Papa John’s shares were up 19% on Wednesday afternoon, on pace for their best day since February 2025.

According to The Wall Street Journal, Irth is offering $47 per share for PZZA, valuing the company at about $1.5 billion. The fund currently holds a roughly 10% stake in Papa John’s, per the report.

Irth has tried to take Papa John’s private before, offering $60 per share in a joint bid with Apollo Global in June of last year. In October, Apollo Global again offered to take the company private at $64 per share. That offer was later withdrawn.

Broadly, the pizza category is being increasingly dominated by Domino’s, which opened 700 stores globally last year and has a market cap 9x greater than Irth’s latest reported offer for Papa John’s.

Exclusive | Papa John’s Draws Fresh Takeover Interest

Exclusive | Papa John’s Draws Fresh Takeover Interest

According to The Wall Street Journal, Irth is offering $47 per share for PZZA, valuing the company at about $1.5 billion. The fund currently holds a roughly 10% stake in Papa John’s, per the report.

Irth has tried to take Papa John’s private before, offering $60 per share in a joint bid with Apollo Global in June of last year. In October, Apollo Global again offered to take the company private at $64 per share. That offer was later withdrawn.

Broadly, the pizza category is being increasingly dominated by Domino’s, which opened 700 stores globally last year and has a market cap 9x greater than Irth’s latest reported offer for Papa John’s.

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