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Click here to read this on StonyFinLab.org
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Featured Student Column: Equity Research Report
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Research Assistant: Daniel Lu* , Daoqi Fang*
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The report analyzes Tesla's position in the electric vehicle (EV) market and concludes that its current stock price is unjustified. Despite strong revenue and margin growth so far, Tesla's global market share has started to decline since 2023 due to competition from companies like BYD and Hyundai. Tesla's EV-focused revenue is stagnating, and its high valuation, reflected in a P/E ratio nearing 100, seems excessive when compared to competitors. While Tesla leads in AI-driven technologies like Autopilot and robotics, we can’t say Tesla is significantly outperforming its peers. A revaluation using Discounted Cash Flow (DCF) and peer comparisons estimates Tesla’s fair stock price at $246, significantly lower than its current $351. (12/3/24)
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The November jobs report will be the week's main focus, with economists expecting 180,000 new jobs and a 3.9% unemployment rate. The labor market has been cooling, as shown by October's modest 150,000 job additions. This report is crucial as it could influence the Federal Reserve's decisions on interest rates, with markets currently anticipating potential cuts in March 2024.
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Peter Thiel, Vivek Ramaswamy, and Miami Mayor Francis Suarez - all crypto advocates - could potentially influence cryptocurrency policy in a future Trump administration. This would likely signal a shift toward more crypto-friendly regulations compared to the current administration's stricter approach.
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Investors are torn between stocks and bonds for 2024, with bonds offering the highest yields in over a decade while stocks rally on expected Fed rate cuts. Many are choosing to invest in both rather than picking sides, given the uncertain economic environment.
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Black Friday achieved record online sales of $9.8 billion, marking a 7.5% increase from last year. Consumers are displaying more price-conscious behavior, actively seeking discounts and spreading their holiday shopping across a longer timeframe. The overall trend suggests a more calculated approach to holiday spending, with shoppers being selective about their purchases while still participating actively in seasonal sales.
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Thanks to our members and volunteers (Seungyun Nam, Rishi Jain and Daoqi Fang) for contributions to this newsletter.
To share information or research with the community, submit it through "Share" below. We will include it if the content is deemed appropriate.
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Stony Finance Lab is a community-based finance network that aims to promote personal financial responsibility and helps the community to achieve financial confidence and financial independence through life-long learning. The emails are to distribute news and information on finance research, events, jobs related to personal finance, investments of financial and digital assets, academic finance, and entrepreneurship. All emails are for information sharing only and shall not be deemed as financial advice. The Lab is not liable for the consequence of using any information contained in the emails.
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