Ferrari More Valuable Than All Of General Motors - What Does That Tell You?

Luxury brands are known to weather the storms better than mainstream marques and Ferrari makes no exception.

Quite the contrary, the Italian luxury sports car manufacturer has seen its market value surge at the start of this week to about $30 billion. Ferrari’s shares rose by as much as 7 percent on Monday, after the company reported better-than-expected earnings. Revenue fell only 1 percent to $1.02 billion, exceeding analysts’ expectations of $852 million.

CANADIANCOMMENTS - 5/5/2020 10:31:24 PM

+2 Boost

The market loves firms that outperform estimates.

Ferrari also has a lot of revenue streams, from old F1 cars, client track only cars, restorations, new car sales, service, financial services, one off creations, F1 merchandise of all sorts, Ferrari World park venues, income from just showing up for an F1 season. It's a long list.

skytop - 5/5/2020 11:24:10 PM

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Oh how the mighty have fallen. GM is hanging on threads.

runninglogan1 - 5/5/2020 11:41:42 PM

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Tesla is worth more than GM, Ford, FCA, Daimler and BMW combined. Jussayin'

PUGPROUD - 5/6/2020 7:32:04 AM

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The market values future earnings potential and sustainability both of which Ferrari has in abundance along with many other strengths (great branding, strong developmental technology, race heritage, etc). GM has been on a slow downward spiral for decades and their prospects look dimmer by the day.

Deutschland - 5/6/2020 8:13:45 AM

+2 Boost

Ferrari has great margins. The fact they make about 90k on every car is impressive. Ford and GM are both in a world of hurt. Ford is essentially a penny stock.

mre30 - 5/6/2020 8:42:58 AM

-1 Boost

It tells you that the (unsophisticated) retail investor is alive and well. Same reason Tesla is levitating.

Retail 'Momentum' players have gone from pricing in future growth to simply pricing in popularity. Stocks like these have become "popularity contest" stocks - who knows how long that lasts.

Deutschland - 5/6/2020 9:07:24 AM

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Citadel recently took a large position in Tesla. Tesla definitely is getting some love from large intuitional players for better or worse.

trboaccord - 5/6/2020 10:41:58 AM

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GM has never been worth anything.. In fact they still owe the U.S taxpayers Billions

xjug1987a - 5/6/2020 10:43:30 AM

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Says alot about GM, they're rudderless...

Foncool - 5/7/2020 7:45:47 AM

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Ferrari operates on a different level than every other car manufacturer. They are viewed as a luxury goods manufacturer not an auto manufacturer.