Amazon Sues Perplexity

Amazon has filed a lawsuit against Perplexity AI, accusing the startup of unauthorized access to customer accounts through its “Comet AI” shopping assistant. Filed in a California federal court, the suit claims Perplexity disguised automated activity as human browsing and created security risks for Amazon users.

🤖 AI Tussle: Amazon said the AI-driven agent violated its platform rules and “trespassed” into restricted areas of its website, degrading the shopping experience and undermining its curated systems. The company is seeking a court order to stop the alleged misconduct.

🗡️ Line of Defense: Perplexity, which markets itself as an AI-powered alternative to traditional browsers, called Amazon’s actions “bullying” and an attempt to block innovation and user choice. It said customer credentials are stored locally, not on its servers, and defended its technology as part of the future of autonomous AI shopping assistants.

Pfizer has acquired obesity drug developer Metsera for $10 billion, ending a competitive bidding war with Novo Nordisk, which withdrew due to U.S. antitrust concerns. Metsera accepted Pfizer’s revised cash offer of $86.25 per share, giving the U.S. pharmaceutical company a stronger foothold in the fast-growing obesity drug market.

Novo said it will continue developing its own treatments and exploring other acquisitions. The deal is expected to close after Metsera’s shareholder vote on November 13.

💰 Bidding War: Pfizer initially secured a deal to acquire Metsera in September, but Novo Nordisk’s last-minute unsolicited offer reignited competition for the biotech firm. The move triggered a high-stakes contest between the two pharmaceutical giants for a leading position in the fast-growing obesity drug market.

📈 Financial Details: Pfizer agreed to acquire Metsera for $86.25 per share, representing a 3.69% premium to the company’s Friday closing price. The offer includes $65.60 in cash per share and a contingent value right that could provide shareholders with up to an additional $20.65 per share in future payments, depending on performance milestones.

Blast from the Past: The bidding contest evoked memories of Pfizer’s 2000 hostile takeover of Warner-Lambert, a $90 billion deal that secured control of its blockbuster cholesterol drug, Lipitor.

IKEA has launched a new retail partnership with Best Buy as part of its $2.2 billion U.S. expansion plan, opening small-format “shop-in-shop” studios in select stores across Florida and Texas. The collaboration marks the first time IKEA products are being sold through another U.S. retailer. Each 1,000-square-foot space allows customers to plan kitchens and laundry rooms with IKEA staff while browsing Best Buy appliances.

The partnership aims to extend IKEA’s reach without building new full-size stores, helping Best Buy diversify its offerings beyond electronics. IKEA’s U.S. CEO, Javier Quiñones, said the move is part of the brand’s strategy to get closer to customers through smaller stores and regional distribution hubs.

The retailer is also increasing U.S. manufacturing of kitchen cabinets and mattresses to offset tariff pressures and maintain low prices. IKEA operates 52 stores nationwide, significantly fewer than rivals such as Walmart or Target.

E.l.f. Beauty shares fell as much as 29% after the company reported slower-than-expected sales growth, despite a strong performance from its newly acquired brand, Rhode, founded by Hailey Bieber. The company’s second-quarter revenue rose 14% to $344 million, but full-year sales guidance of $1.57 billion missed Wall Street’s $1.65 billion forecast.

Rhode’s September launch at Sephora North America became the biggest in the retailer’s history, generating $15 million in sales in two days. E.l.f. projects Rhode will grow 40% in 2025, adding $200 million in sales this fiscal year.

However, E.l.f.’s own growth slowed amid tariff pressures and rising costs, which trimmed margins by around 2%, even after price hikes across its cosmetics portfolio. The company has diversified its supply chain, reducing China’s share of production to 75% from 100%.

Amazon has expanded its low-cost e-commerce platform, now officially branded as Amazon Bazaar, to 14 additional international markets, including Hong Kong, Taiwan, Nigeria, and the Philippines. The move is part of Amazon’s strategy to compete with Chinese rivals Shein and Temu, targeting price-sensitive shoppers with products priced mostly under $10.

The new platform, similar to the company’s Amazon Haul, focuses on budget-friendly apparel and home goods, some priced as low as $2. Analysts say the expansion underscores Amazon’s push to capture emerging market demand as U.S. tariffs dampen domestic consumer spending.

Amazon Bazaar’s rollout follows the company’s strong third-quarter international revenue of $40.9 billion, up 10% year-on-year. Analysts expect Amazon to take several years to reach profitability in new regions but note that low-cost retail could unlock global scale beyond its current 23 core markets.

U.S. holiday retail sales are projected to surpass $1 trillion for the first time, according to the National Retail Federation, though growth will slow compared with last year’s 4.3% rise. Spending during the November–January holiday period is expected to increase by 3.7%-4.2%, reaching $1.01–$1.02 trillion.

The NRF cited inflation, tariff-related price increases, and the ongoing government shutdown as key factors weighing on consumer sentiment. Despite these headwinds, the group said American consumers remain resilient, continuing to drive economic activity.

Retailers are expected to hire 265,000 to 365,000 seasonal workers, significantly below last year’s 442,000, reflecting a cooler labor market. The NRF’s forecast suggests that while overall spending remains strong, tariff pressures and economic uncertainty could temper what would otherwise be a record-breaking holiday season.

Canadian e-commerce platform Shopify expects strong revenue growth in the upcoming holiday quarter, buoyed by resilient consumer demand despite U.S. import tariffs and rising prices. The company projected a mid-to-high 20% revenue increase for the fourth quarter, outpacing analyst expectations of 23.4%.

However, Shopify’s profitability took a hit as gross margins fell to 48.9% from 51.7% the previous year, weighed down by R&D and marketing expenses associated with AI expansion and global growth efforts. The company’s stock slipped about 3% following the announcement, though shares remain up nearly 60% this year.

Roughly half of Shopify’s gross merchandise volume growth now comes from international markets, reflecting the platform’s broadening global footprint and growing competitiveness ahead of the holiday season.

Target is overhauling its online order fulfillment strategy in an effort to improve in-store experiences and reverse a four-year sales slump. The retailer, long known for tidy aisles and curated shopping, has faced rising complaints over messier stores, empty shelves, and long lines, leading to declining foot traffic and weaker customer satisfaction.

Under the new approach, only select Target stores will handle online “ship-to-home” orders, while others will focus solely on in-store and curbside pickups. The change, already expanded to 36 U.S. markets, aims to reduce employee workload, improve stocking consistency, and free staff to assist customers.

According to reports, early results from the Chicago pilot showed improved in-stock rates, cleaner aisles, and a 10% jump in customer satisfaction. However, overall store traffic continues to lag amid economic pressures and growing competition from Walmart and Amazon.

U.S. consumer sentiment fell sharply in November to its lowest level in more than three years, as the government shutdown and persistently high prices weighed on confidence, according to the University of Michigan survey. The sentiment index dropped 3.3 points to 50.3, just above its June 2022 low — one of the weakest readings since records began in 1978.

The report showed broad declines across age, income, and political groups, with Democrats and independents registering the lowest confidence since 1984. The current conditions index plunged 6.3 points to a record low of 52.3, while expectations for the job market worsened significantly.

About 71% of respondents expect unemployment to rise in the next year, and personal finance assessments hit a six-year low. Despite easing long-term inflation expectations to 3.6%, consumers cited growing concern about near-term prices and job stability.

Major U.S. retailers — including Amazon, Walmart, and Target — have raised prices this year to offset higher costs from Trump administration tariffs. Still, Amazon’s hikes are the steepest, according to pricing data from DataWeave.

Amazon’s prices rose 12.8% on average through September, compared with 5.5% at Target and 5.3% at Walmart, across categories such as apparel, home goods, and health products. The sharpest surge occurred between January and February, when Amazon’s prices increased by 3.7%, ahead of most new tariffs.

Analysts attribute the larger increases to Amazon’s reliance on third-party sellers, who face more direct tariff exposure and often pass costs to shoppers. In contrast, Walmart and Target use private labels and bulk procurement to buffer prices.