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Using only Meta platforms and Tesla stocks. Then give me 2-3 pages of info on the ss below please! If you do not want to

Using only Meta platforms and Tesla stocks. Then give me 2-3 pages of info on the ss below please! If you do not want to type 2-3 pages then let someone who will answer this!

Main idea: You are looking to find a major variable that the firm has NO control over (because it is a macro variable) that alters the environment in which the firms operate.

What is the main macroeconomic variable/influence on the valuation of the stocks and industry?

  • Choose either a demand or a supply variable. Note you do not have to do both a demand and a supply variable. Pick the one that has the greatest impact on the firms sales, profits, and cash flow.
    • Present and explain a graph or a chart showing the relationship between your stocks prices/returns with the main variable.

  • Here are some ideas if you choose a variable affecting demand for the product/service.
    • Remember that demand is both the willingness to buy and the ability to buy. Choose a variable that affects willingness and/or ability.
    • To what do the buyers respond or what variable has the greatest effect on buyer decision?
    • What changes the buyers decisions to purchase the product/service?
    • What will cause them to buy more? What will cause them to buy less?
    • What will cause them to buy from a different firm?
  • Examples include interest rates (think buying on credit), consumption patterns, demographic characteristics, GDP, exchange rates, etc.
  • Here are some ideas if you choose a variable affecting supply of capital, input cost, ability to hire scientists, research & development, or another supply-side variable.
  • Remember that supply is influenced by both the costs and availability of inputs along with the costs of substitutes and compliments in the production process.
  • What will cause the firm to produce more? What will cause the firm to produce less?
  • What will cause the firm to sell to different buyers?
  • Examples include commodity prices, interest rates, exchange rates, oil prices, inflation, etc.

No matter if you choose a demand or a supply variable, discuss how that variable affects the firms valuation.

  • Demand variable changes Buyers purchase more/less Firms sales increase/decrease Firm profits increase/decrease Firms cash flow increases/decreases
  • Supply variable changes Firms produce more/less Firms sales increase/decrease Firm profits increase/decrease Firms cash flow increases/decreases

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