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Airbnb dodges a New York bullet: The Weekly Scoop

This week, Airbnb dodges a New York bullet (for now), Adobe excites investors with its promising AI outlook, and Urban Outfitters is given an upgrade by Morgan Stanley. It’s your favourite time of the week, let’s dig into The Weekly Scoop! 

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Airbnb dodges a bullet and stock climbs 6% 🏡

NYC’s crackdown: Airbnb was heading for trouble when New York announced a new law that required Airbnb hosts to register with the city for an operating licence. Why’s that bad? It would essentially eliminate thousands of vacation rentals in one of the world’s most visited cities.

  • A change of heart: A combination of Airbnb stepping in to block the new regulation and hotels struggling to keep up with demand has left New York stepping back on enforcing the law.

  • Everything’s fine, for a New York minute: The Big Apple may have pulled back on some of its rules, but it’s only for the summer. By September, it’s expected the state will be looking to enforce them once again. What will happen then? Who knows, but investors have a reason to smile for now.

Adobe stock climbs 10% thanks to its AI strategy 🤖

Impressive earnings: Last night, Adobe reported earnings that showed investors it’s fulfilling current market demands and has a solid AI vision in place.

  • Another day, another AI: This past week, Adobe rolled out Sensei GenAI which is artificial intelligence aimed at businesses. It autonomously creates content that is ‘brand aware’, incorporating a brand’s tone of voice, style guidelines, and other specific requirements. 

  • On cloud nine: But Adobe hasn’t lost sight of what customers currently need. Its creative cloud division has continued to be in strong demand with Photoshop, Lightroom and Premier Pro being solid revenue drivers. 

Urban Outfitters jumps 5% thanks to Morgan Stanley upgrade 🧥

The stock that keeps on climbing: Urban Outfitters is already up more than 35% for the year but Morgan Stanley says the stock is not done pleasing its investors just yet. 

  • The sub brand making positive gains: Morgan Stanley analysts see significant improvement ahead in the company’s Anthropologie brand in particular. In the autumn, Morgan Stanley also expects the back-to-school season to help the retail stock continue to flourish. 

  • From neutral to buy: When one of the world’s leading financial institutions says a stock could still climb another 25% from where it’s at now, the investing world tends to listen. Many became bullish which is why shares jumped 5%.

What have we learned this week? 🤓

  • AI is the future, but don’t forget about the now: Lots of stocks have surged this quarter thanks to AI. But investors of Adobe are particularly excited as it’s still very focused on giving customers what they need today (creative cloud technology). 

  • Companies are vulnerable to the macro environment: If a state decides to change its laws, there’s not much a company can do. Airbnb has survived the battle, but will it win the war?

  • Urban Outfitters could keep climbing: Currently trading at $33.50 a share, a 25% increase would take the stock up to $41. That would result in the stock being up 60% year-to-date, which is impressive given the difficulties many apparel companies have faced this year.

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*Figures correct as of June 15th 2023.

Past performance does not guarantee future results. Capital at risk when investing.

This content is for educational purposes only. Shares does not provide investment advice. If you are unsure about anything, please seek advice from an authorised financial advisor.

Meet the authors

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James Ashoo

Senior Content Writer

James has been investing for over five years. His aim is to explain the hard stuff, easily! When he's not chewing your ear off about stocks and crypto, he'll most likely be telling bad jokes.

Harjas Singh

Harjas Singh

Chief Product Officer & Co-Founder

With a wealth of experience in fintech, Harjas is the man in the know when it comes to all things product. Investing features, chatting capabilities and thriving communities – he oversees all development on the Shares app!

Harry Harrison

Harry Harrison

Finance Writer

Harry is an experienced business writer, with a love for all things tech. In his free time, he enjoys reading, playing sport and winning at chess. He also loves posting inside the Shares app!