Tesla self driving: The Weekly Scoop

Tesla is down, but Airbnb & Palantir surge: The Weekly Scoop

This week, Tesla stock fell after recalling 360,000 vehicles, but Airbnb and Palantir had some positive quarterly earnings. Let's tuck into the Weekly Scoop.

💡 If you want these updates delivered to your inbox every Friday, sign up here

Green ornament

Tesla hits the brakes as stock slows down by 5% 🏎

Tesla is recalling 362,000 vehicles due to a full self-driving software flaw. On Thursday evening, The National Highway Traffic Safety Administration reported the software allows a vehicle to “exceed speed limits or travel unpredictably, increasing the risk of a crash.”

Musk isn’t happy that the word ‘recall’ is being used, as he believes it can be fixed with an ‘over-the-air’ update. Unfortunately for him, it seems the damage is done as the stock is down 5%.

Airbnb jumps 11% thanks to positive earnings 🏡

It was all love for Airbnb as the company announced its first full year of profitability on Valentine’s Day. Thanks to a global travel rebound, Airbnb’s international bookings were up 49% year-on-year. The company has also upped its prices, leading the company to report a net income of $1.9bn, up 24% from last year.

The company also announced it has repurchased $1.5bn in stock in the past five months, which may have helped drive the share price up for two reasons:

1. It shows Airbnb are confident in its own stock, which often helps investor confidence

2. It can increase the stock’s demand, as it leaves fewer shares available for investors outside of Airbnb

Palantir soars 17% after posting first profitable quarter 👨‍💻

On Monday, the software company announced a net income of $31 million. This is a significant increase from the previous year, as it lost $156 million. Palantir’s CEO, Alex Karp, had originally stated he didn’t expect this level of profitability to come until 2025. He’s said it’s left the company feeling “very, very excited”, and our guess is shareholders are feeling the same way.  

What have we learned this week? 🤓

  • If a company can increase its prices and still receive the same amount of demand, it’s likely to increase profit, potentially leading to better earnings

  • Earnings season often affects a stock’s price - when a company shows they’re profitable, it gives investors confidence they’ll potentially see a return on their investment

  • When a company repurchases its own stock, it often drives share price up

[Start investing]

Thanks for tucking in! Want to receive these updates every Friday? Sign up here or share via WhatsApp with your friends.

*Figures correct as of Feb 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

James Ashoo photo

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!