In December 2022, our focus was on Tesla, Southwest Airlines, Kala Pharmaceuticals, and Hoth Therapeutics. See how these stocks reacted to the latest events.

Kala Pharmaceuticals shares skyrocketed 540%

Kala Pharmaceuticals shares skyrocketed 540%

On Tuesday, 27 December, American biotech company Kala Pharmaceuticals Inc. announced that the US Food and Drug Administration (FDA) had accepted its application for clinical tests of the KPI-012 drug. It is meant for treating persistent corneal epithelial defects.

The company representatives stated that they planned to start the new phase of KPI-012 tests in Q1 2023. On Wednesday, this news made the shares of Kala Pharmaceuticals Inc. (NASDAQ: KALA) jump a remarkable 218.37% to $12.48. On Thursday, the quotes surged 99.04% more to $24.84. As a result, since Monday, the share price skyrocketed 540.2%.

Southwest Airlines stock plunged following the cancellation of over 10,000 flights

Southwest Airlines shares slumped due to flight cancellations

On Tuesday, Southwest Airlines stock (NYSE: LUV) plunged 5.96% to $33.94. The quotes went on falling the next day by 5.16% to $32.19.

The decline of Southwest Airlines shares was due to the cancellation of a huge number of flights – more than 10,000 since the beginning of the week. The main reasons were the bad weather conditions throughout the country and technical issues in systems operations.

The company promised to reimburse its clients and is currently actively accepting and processing applications for this. This action improved the Southwest Airlines stock situation, and on Thursday the shares gained 3.7% to $33.38.

Hoth Therapeutics stocks surged 229%

Hoth Therapeutics shares soared 229%

On Thursday 29 December, it became known that the application of biopharmaceutical company Hoth Therapeutics Inc. for clinical tests of the HT-001 drug had been accepted by the FDA.

HT-001 was created for the treatment of skin diseases caused by the EGFR therapy, which is actively used against cancer.

On the same day, the shares of Hoth Therapeutics Inc. (NASDAQ: HOTH) soared 143.64% to $10.72. Note that they had grown by 228.8% since the beginning of the week.

Elon Musk’s attempt to appease employees and investors

Tesla shares leaped up by the end of the week

On 27 December, at the closing of the trading session, the stock price of Tesla Inc. (NASDAQ: TSLA) plunged 11.4% to $109.1. This is the bottom since August 2020.

It became known that Tesla Inc. would continue the electric car production halt in Shanghai due to the COVID-19 outbreak among employees. As you might know, this is the largest plant of the company that used to produce over 50% of the overall production volume in the first three quarters of 2022.

On Thursday, the director-general of Tesla Inc. Elon Musk asked the employees to disregard the decline of the company's stocks and to increase production. He assured the team that in the long run, the company would become the most expensive one in the world. On the same day, Tesla's quotes rallied 8.08% to $121.82.

Summing up

This week the FDA accepted the applications of Kala Pharmaceuticals Inc. and Hoth Therapeutics Inc. for the clinical tests of their new drugs — consequently, the stocks of these two companies recorded 540% and 229% growth, respectively.

Since Monday, Southwest Airlines cancelled more than 10,000 flights, which sent its stock quotes down 11% over two days.

It seems that Elon Musk has managed to calm down Tesla's employees and investors: on Thursday, the company's stock gained 11% after plummeting by 8%.

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Server is the guru of searching for market insights. Since 2019 he writes about everything that might be useful to the investor, focusing on the stock market and its assets.