Hello Gauchos! Investment Connection wants to thank everyone who showed up to our tabling events last week and took the initiative to subscribe to our newsletter! We are excited to have you as a part of our club and look forward to connecting with each one of you at our weekly meetings.  

Below you'll find: 

• FIRST MEETING FRIDAY 09/30 from 5pm - 6pm NH 1106

• Last weeks market performance 

• News that moved markets

• An outlook on this weeks earnings

• Finding your next summer internship

News that moved that markets

Federal Reserve Raises Rates .75 Point, Says More Hikes Coming: Federal Reserve officials say they expect to keep fighting inflation with more interest-rate increases, rising to more than 4.25% by year’s end.

World Bank Cuts China Growth Forecast as Covid-19, Real-Estate Crunch Take Toll: Emerging economies in Asia are seen outpacing China for the first time since 1990

2-year Treasury yield rose above 4% for the first time since 2007, the 10-year yield hit an 11-year high.

Earnings 

Black Berry ($BB): Beloved by younger retail investors, the company is set to report earnings this Tuesday. 

Carnival Corporations ($CCL): Among the plethora of businesses deeply hit by COVID, Carnivals Cruises earnings report should be interesting as analysts try to calculate and predict consumer demand for the world's largest cruise line. 

Economic Data Recap

Consumer Confidence: Consumer confidence, up nearly 6 points to 103.2 in August, far exceeded expectations but remained very soft. September's consensus is for further improvement to 104.3.

New Home Sales: New home sales have collapsed, falling to an annualized rate of 511,000 in July for a nearly 30 percent decline from July last year. No bounce back is expected for August, at a consensus of 498,000. This report has missed expectations substantially in the last two reports.

Upcoming Economic Data

GDP: The third estimate of second-quarter GDP, at a minus 0.6 percent consensus, is expected to show no change from the second estimate. Personal consumption expenditures, at 1.5 percent growth in the second estimate, is also expected to match the second estimate.

Opinion: Tesla's Highly Anticipated FSD Beta

     With Tesla rolling out it’s highly anticipated and long awaited full self-driving beta (FSD) feature, investors are eager to see what the future of FSD looks like. As of July 2022, there are over 100,000 Tesla drivers enrolled in the FSD Beta program in the U.S. and Canada. 

In short, FSD Beta allows Tesla vehicles to drive autonomously to a destination entered in the car's navigation system. Since this is the Beta program, drivers must remain vigilant and ready to take control at all times.

 The system is designed to be able to conduct short and long distance trips with no action required by the person in the driver’s seat. However drivers are pushing the capabilities of the feature by doing test drives from Los Angeles to San Diego, parking lot to parking lot, with zero takeovers. A 120 mile drive with no human interactions is a celebrated victory in the eyes of many, but still not nearly a large sample size to conclude its success.

Full Self Driving is not only a hoorah to human ingenuity, but it also plays a large part in investors calculation of the companies future value. Tesla’s current  P/E ratio is 105.6 with Earnings per share year over year (YoY) of $2.64. Additionally Tesla’s 1 year Beta is 2.19 with one year performance up +5.60% in comparison to the NASDAQ which has YoY returns of -28.10%. Despite the massive growth we’ve seen over the last 5 years, the automaker currently accounts for just roughly 1% of the total vehicle market share. Tesla has put out a 20 million vehicle target by 2030.

With more to come on how FSD is able to perform, it’s safe to say that the future of electric vehicles is already here. 

Meetings and Events!!

First meeting will be held this Friday from 5pm - 6pm at North Hall 1105  

Job Openings (because you are -99.69% YTD)

MEMES

https://ucsb.joinhandshake.com/stu/events/1103841?ref=virtual_group_events