|
Click here to read this on StonyFinLab.org
|
|
|
|
|
|
|
|
|
|
Featured Student Column: Equity Research Report
|
|
Research Assistant: Samuel Zou*
|
|
|
|
|
This report takes a deep dive into the current valuation of the fintech firm Sofi and supports a hold recommendation. With promising macroeconomic trends and financial leeway, Sofi is on track to become a renowned online banking platform. We examine the firm's income statement and balance sheet. It would be difficult to analyze the firm using traditional methods as discounted cash flow and dividend discount models are incompatible with the firm. Instead, we rely on peer comparisons and a Monte Carlo simulation. A positive upward trend and strong management however point to potential upsides that Sofi has.
|
|
|
|
|
|
|
|
|
In 2024, cryptocurrency gained significant mainstream acceptance, with Bitcoin prices soaring over 130% to surpass $100,000, spurred by institutional adoption, ETF launches, and regulatory shifts under a pro-crypto administration. Despite skepticism about long-term stability, industry leaders remain optimistic about continued growth, projecting Bitcoin could reach $200,000 by 2025. This momentum marks a dramatic shift in crypto’s position in finance and policymaking.
|
|
|
|
|
|
Investor enthusiasm for AI continues to propel tech stocks, with Nvidia over 175% in 2024 and the “Magnificent Seven” hitting record highs. As AI spending broadens to utilities and software sectors, experts project the S&P 500 could reach 6,500-6,666 by 2025. The focus is shifting from AI creators like Nvidia to adopters like Salesforce and Adobe, which benefit from AI-driven revenues in the next investment phase.
|
|
|
|
|
|
|
Health insurers faced a challenging 2024 with rising medical costs, heightened scrutiny, and a shifting policy landscape. Profits were impacted by increased Medicare Advantage utilization post-pandemic, with elevated medical loss ratios across major players. Notably, UnitedHealth dealt with cyberattacks, leadership tragedy, and regulatory pressures, dragging down sector performance. Analysts expect ongoing challenges into 2025, with policy uncertainties and competitive dynamics further influencing industry trends.
|
|
|
|
|
|
|
Financial markets are responding to anticipated policies from Donald Trump, the incoming president in January 2025. The Federal Reserve acknowledged potential economic impacts, including tariffs and deportation policies, which could heighten inflation. Stocks fell after the Fed’s rate cut and cautious tone. Meanwhile, Trump and Elon Musk influenced Congress to reject a spending bill, causing legislative chaos. Despite these uncertainties, Trump will inherit a strong economy from President Biden, though analysts predict stagflation risks under Trump’s administration.
|
|
|
|
|
|
|
|
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.
Support our efforts to make free and useful financial education content by donating to @stonyfinlab via Venmo!
|
|
|
|
|
|
|
|
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.
|
|
To subscribe to our mailing list using an alternative email address:
|
|
|
|
|
|
To unsubscribe from our mailing list:
|
|
|
|
|
|
|
|
|
