The Score: Meta Platforms, McDonald’s, Kohl’s and More Stocks That Defined the Week
5min read The week leading up to May 3, 2025, was marked by dramatic shifts in corporate fortunes, with leadership shakeups, earnings surprises, and trade policy anxieties reshaping investor sentiment. meta platforms (META), McDonald’s (MCD), and Kohl’s (KSS) each became symbols of broader market trends—AI-driven optimism, consumer caution, and corporate governance crises—while broader indices teetered between hope and worry. Here’s how the week unfolded and what it means for investors.
Meta Platforms: AI Buoyancy vs. Legal Headwinds
Meta Platforms surged 4% in after-hours trading on April 30 and climbed further in early May, driven by Q1 results that defied expectations. Revenue rose 14% to $41.4 billion, while earnings hit $5.28 per share, outpacing Wall Street’s forecasts. CEO Mark Zuckerberg emphasized AI’s transformative role in ad targeting and content creation, which investors embraced as a hedge against stagnant user growth.
Yet, the company’s legal battles loomed large. Antitrust scrutiny over its 2012 Instagram acquisition and potential data privacy fines in the EU underscored risks. Analysts noted that while AI investments are compelling, Meta’s valuation hinges on executing its vision without regulatory blowback. The stock’s 12-month return of 37% reflects this dual narrative: innovation versus liability.
McDonald’s: Tariff-Induced Slump
The golden arches turned red on May 1 as McDonald’s shares fell 1% after reporting a Q1 earnings miss. U.S. comparable sales dropped 1.5%, with CEO Chris Kempczinski blaming “consumer uncertainty” tied to trade tensions. The company’s reliance on discretionary spending made it vulnerable to tariff-driven inflation, as families cut back on fast-food splurges.
The results underscored a broader retail challenge: even iconic brands struggle when consumer confidence falters. McDonald’s 12-month stock decline of 15% reflects investors’ skepticism about its ability to navigate a tariff-scarred economy.
Kohl’s: Leadership Chaos and a Stock Surge
The week’s most dramatic story unfolded at Kohl’s, where shares skyrocketed 9% on May 1 after the board abruptly fired CEO Ashley Buchanan “for cause.” The move followed an investigation revealing Buchanan’s failure to disclose a romantic relationship with Chandra Holt, a business partner whose ventures had secured unapproved vendor deals with Kohl’s.
The interim leadership of board chair Michael Bender provided immediate relief, but the company’s fundamentals remain dire. Fourth-quarter revenue dropped 9.4%, and 2025 guidance projects a 5-7% sales decline. With a 65% year-to-date stock decline and a $5 price target from UBS, Kohl’s recovery hinges on operational overhauls—not just leadership changes.
Other Market Movers: Tech Resilience vs. Retail Woes
- Microsoft (MSFT): A 11% revenue jump to $68.4 billion in Q3, fueled by Azure’s cloud dominance, sent shares up 8%. Investors bet on AI monetization despite broader tech sector volatility.
- Amazon (AMZN): Q2 results disappointed, with operating margins squeezed by tariffs and supply chain costs. Shares dipped 3%, highlighting e-commerce’s vulnerability to trade friction.
- Apple (AAPL): A 4% revenue rise to $94.1 billion was tempered by iPhone production shifts from China, reflecting supply chain risks.
The Broader Picture: Trade Wars and GDP Stumbles
The week also saw the U.S. GDP contract by 0.3% in Q1—the first negative growth since 2022—as consumer spending and business investment faltered. Meanwhile, jobless claims hit a two-month high, underscoring labor market softness. Against this backdrop, tech stocks like Meta and Microsoft thrived, while retailers and discretionary spenders languished.
The Bottom Line: Navigating Volatility
The week’s events highlight a stark divide between sectors betting on innovation (tech) and those struggling with macroeconomic headwinds (retail). Meta’s AI narrative and Microsoft’s cloud dominance suggest tech’s resilience, but their stock valuations now face higher scrutiny. Meanwhile, McDonald’s and Kohl’s illustrate the perils of relying on discretionary spending in a tariff-ridden economy.
For investors, the path forward requires balancing optimism about transformative technologies with caution around trade policy risks. While Meta’s 4% post-earnings surge and Kohl’s 9% rebound on May 1 show short-term opportunities, long-term success hinges on companies like Kohl’s proving they can fix deeper structural issues—and on policymakers easing trade tensions. Until then, volatility will persist.
In this week’s scorecard, the winners were those betting on AI and cloud, while the losers were those stuck in the crossfire of trade wars. The next play? Watch for May’s nonfarm payrolls report and U.S.-China trade talks to see whether optimism or caution prevails.
