Why Ferrari Stock Hit the Brakes This Week

Core Insights - Ferrari's stock experienced a significant decline following the company's updated revenue guidance for 2025 and 2030, with a 15% drop on Thursday, marking its worst trading day ever [1][3][7] - The company's 2030 revenue forecast of approximately 9 billion euros fell short of Wall Street's consensus estimate of around 10 billion euros, leading to investor disappointment [3][4][6] - Ferrari's adjusted EBITDA for 2030 is projected to be 3.6 billion euros, reflecting a lower annual growth rate of 6% compared to the previously anticipated 10% [4][7] Revenue Guidance - For 2025, Ferrari estimates revenue will be at least 7.1 billion euros, a slight increase from the previous estimate of over 7 billion euros [3][6] - The 2030 revenue outlook of 9 billion euros is significantly below analysts' expectations, contributing to the stock's decline [3][6] Electric Vehicle Strategy - Ferrari announced a reduction in its electric vehicle (EV) ambitions, stating that only 20% of its vehicles will be EVs by 2030, down from the previously expected 40% [5][7] - The company plans to continue focusing on hybrids and internal combustion engine (ICE) powertrains, which will account for 40% of its models in 2030 [5][7] Market Reaction - Investors reacted negatively to the combination of lower revenue guidance, disappointing EBITDA growth projections, and a scaled-back EV strategy, resulting in a notable drop in share price [1][6][7] - The upcoming third-quarter results are anticipated to provide further insights into Ferrari's performance and strategy [7]