As U.S. and allied strikes on Syria raise geopolitical tensions, investors would do well to neither sell nor buy, as the right time to sell would’ve been before these attacks, while buying doesn’t make sense since the stock market’s rally is likely to peter off in coming months.
It was a busy weekend as Starbucks Corporation (NASDAQ:SBUX), Tesla Inc (NASDAQ:TSLA) and Zillow Group Inc (NASDAQ:ZG) all made headlines regarding the arrest of two black patrons, electric vehicle battery life and entering the house purchasing business respectively.
Here’s what went down:
Starbucks Corporation (SBUX)
Starbucks is in hot waters after the company arrested two black customers at a store after management deemed them “suspicious,” prompting the company CEO to apologize.
This incident took place Thursday when two black men entered a Starbucks in downtown Philadelphia and sat down. One of the men was sitting for a while before his friend arrived, which management reportedly considered to be suspicious activity.
One of the men also asked to use the restroom but was refused by an employee to do so because the men hadn’t bought anything. They were asked to leave, they declined and an employee called the authorities.
There was a video that recorded the incident, which has more than 8 million views, prompting Starbucks CEO Kevin R. Johnson to say that it was “very hard to watch” and calling the instance as having a “reprehensible outcome.” The men were not identified but were arrested on suspicion of trespassing.
Starbucks said it did not want to press charges on the incident and later apologized via Twitter on Saturday afternoon. However, the damage had been done and Twitter users started the hashtag #BoycottStarbucks.
CEO Mr. Johnson said he wanted to meet with the men in person for a “face-to-face apology” as well, adding that he would investigate and make the necessary changes to ensure that something like that never happened again.
SBUX stock fell 0.3% on Friday.
Tesla Inc (TSLA)
Tesla owners will be happy to hear that the company’s electric vehicles have more durable batteries than anyone could have anticipated.
A group of Tesla owners on the Dutch-Belgium Tesla forum have been gathering data from more than 350 vehicles from across the world and updating in a public Google file. They found that the energy capacity of the cars’ battery packs degraded less than 10% after over 160,000 miles
The data also reveals that for the first 50,000 miles (100,000 km), most Tesla battery packs will lose about 5% of their capacity. However, after the 50,000-mile mark, the capacity of these packs stops fading as much and may not lose another 5% until the vehicles have quite a bit of mileage on them.
The trend suggests that the Tesla cars could cycle through more than 186,000 miles (300,000 km) before the battery packs reach 90% capacity.
TSLA shares were up 2.1% on Friday.
Zillow Group Inc (ZG)
Zillow announced over the weekend that it would start buying and flipping homes to further boost its ROI.
The real estate company said it would start buying homes in Las Vegas and Phoenix, paying commissions to homeowners to ensure everyone gets a fair deal. The company will also “make necessary repairs and updates and list the home as quickly as possible.”
Zillow calls the deal “Instant Offers” and said the plan is to allow real estate agents the opportunity to garner new listings by linking them up with motivated sellers who want to get the most bang for their buck.
“Zillow found the vast majority of sellers who requested an Instant Offer ended up selling their home with an agent, making Instant Offers an excellent source of seller leads for Premier Agents and brokerage partners,” the company wrote.
CEO Spencer Rascoff said the company will assume debt in order to fund this initiative.
ZG shares plummeted 7.3% Friday.
As of this writing, Karl Utermohlen did not hold a position in any of the aforementioned securities.