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Ferrari’s Recent Performance and Market Outlook
Ferrari (NYSE: RACE) faced a significant sell-off following its Capital Markets Day on October 13, 2023, where management issued 2030 guidance that fell short of investor expectations. The company’s stock has increased by 578% over the past decade, yet its recent performance has raised concerns among investors as it experienced its worst trading day ever.
Production and Financial Highlights
Ferrari maintains exclusivity with an annual production of just 1,000 vehicles per model, despite overall production increasing by 88% in the past 10 years. As of 2024, hybrid vehicles account for 51% of sales, and the company anticipates its electric vehicle output to reach 20% of its lineup by 2030. Additionally, Ferrari boasts an impressive operating margin of around 30%, with earnings per share in the first half of 2023 at €4.68 ($5.42), an increase of over 10% year-over-year.
Investment Considerations
Despite strong performance, analysts suggest Ferrari may not provide life-changing returns, as it has underperformed in comparison to competitors in high-growth sectors like artificial intelligence. The company continues to appeal to luxury buyers with a diverse range of vehicles, but experts caution investors to consider other stocks that may offer greater long-term gains.
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