Ride-hailing giant Uber experienced a nearly 6% drop in its share price on Wednesday following General Motors’ announcement to discontinue funding for its robotaxi venture, Cruise. This decision impacted Uber as the two companies had a partnership planned for next year to deploy autonomous vehicles on Uber’s platform. GM stated its intention to integrate the Cruise team with its own workforce to focus on autonomous and assisted driving for personal vehicles.
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Tesla Hits All-Time High Amidst Continued Post-Election Surge
Electric vehicle manufacturer Tesla reached a record-breaking high on Wednesday, closing at $424.77. This continues the remarkable upward trend the company has seen since the November election, with a 69% increase in stock value. CEO Elon Musk’s vocal support for the then president-elect has been cited as a potential contributing factor. Furthermore, Tesla reported impressive sales figures from China, exceeding 21,900 EVs in the first week of December, marking the highest weekly sales for the fourth quarter. Bolstering this positive momentum, Morgan Stanley raised its price target for Tesla to $400 from $310 while maintaining an “overweight” rating.
Meta Platforms Makes $1 Million Donation to Inaugural Fund
Social media behemoth Meta Platforms drew attention on Thursday morning following reports of a $1 million donation to the then incoming president’s inaugural fund. This contribution comes after speculation regarding CEO Mark Zuckerberg’s efforts to cultivate influence within the new administration. Sir Nick Clegg, Meta’s president of global affairs, reportedly emphasized Zuckerberg’s desire to actively participate in discussions concerning America’s continued technological leadership. These comments followed a Meta report analyzing the role of generative AI in the 2024 global elections, concluding its impact was “modest and limited in scope.” Meta’s stock, which saw a 2% rise on Wednesday, remained relatively stable in pre-market trading on Thursday.
SThree Shares Plummet After Profit Warning for 2025
Recruitment firm SThree, specializing in STEM fields, experienced a significant 24% drop in its share price on Thursday after issuing a profit warning for 2025. Citing persistent economic challenges and weak new business activity throughout FY24, the company projected a pre-tax profit of approximately £25 million ($32 million) for FY25, which includes £7 million in one-off costs. Despite this forecast, SThree announced a £20 million share buyback program anticipated to conclude within the next six months. CEO Timo Lehne attributed the downturn to protracted challenging economic conditions and delayed decision-making impacting new placement activity.
Currys Shares Surge Despite Budgetary Impact Warning
Despite anticipating a £32 million hit from the UK’s autumn budget, electronics retailer Currys witnessed a 12% surge in its share price on Thursday. The company attributed this impact to increased wage costs resulting from national living wage increases and higher national insurance contributions. However, Currys reported a substantial 52% year-on-year increase in earnings before interest and tax, reaching £41 million in the first half. Analysts viewed these results as a validation of the company’s resilience and strategic decisions. Currys indicated potential price hikes to offset the additional costs imposed by the budget.
Other Notable Market Activity
Several other companies made headlines on Thursday, December 12th, including Costco, Broadcom, RWS, De La Rue, NewRiver REIT, Jabil, and Ciena. These developments highlight the dynamic nature of the market and the diverse factors influencing stock performance.
Conclusion
This market overview captures a snapshot of significant movements and announcements impacting key players across various sectors. From Uber’s setback in the autonomous vehicle space to Tesla’s continued ascent and Meta’s strategic political donation, these developments underscore the complex interplay of factors shaping the financial landscape. SThree’s profit warning and Currys’ resilience in the face of budgetary challenges further illustrate the diverse forces at play in the market. Keeping abreast of these trends and news is crucial for investors seeking to navigate the complexities of the modern financial world.
