Core Viewpoint - Ferrari's stock price has entered a bear market, declining over 25% from its peak in July, currently trading at $392 and resulting in a market capitalization of $94 billion [1] Group 1 - The stock price of Ferrari has dropped significantly, indicating a bearish trend in the market [1] - The decline in stock price has led to a market capitalization reduction to $94 billion [1]

Core Viewpoint - Ferrari's stock (RACE) has experienced a 19% decline over the past week, currently trading at $389.56, with concerns about its high valuation suggesting a potential price target of $273 [2][3] Stock Assessment - The stock is considered relatively expensive despite its strong operating performance and financial condition, indicating a need to reduce exposure [2][3] - A diversified investment approach is recommended over relying on a single stock, as evidenced by the performance of the Trefis High Quality Portfolio [3] Company Overview - Ferrari has a market capitalization of $70 billion and operates in the luxury performance sports car segment, licensing its brand for lifestyle goods and running retail stores and themed entertainment parks globally [4] Financial Performance - Revenue growth has averaged 15.7% over the last three years, with a 12% increase from $6.1 billion to $6.9 billion in the last 12 months, and a quarterly revenue growth of 13% to $1.8 billion [5] - Operating income for the last 12 months was $2.0 billion, with an operating margin of 28.9% and a cash flow margin of 33%, generating nearly $2.3 billion in operating cash flow [7] Profitability and Financial Stability - Net income for the same period was approximately $1.6 billion, resulting in a net margin of about 23% [7] - The company's debt stood at $3.3 billion, leading to a debt-to-equity ratio of 4.8%, while cash and cash equivalents accounted for $1.9 billion of total assets of $9.9 billion, yielding a cash-to-assets ratio of 19.4% [7] Market Resilience - Ferrari's stock has shown resilience during economic downturns, recovering fully from declines faster than the S&P 500 index during the 2020 COVID-19 pandemic and the 2022 inflation shock [6][8]

Core Insights - The company has set a revenue growth target of approximately 5% annually until 2030, which some analysts view as cautious [1] - There is a commitment to deliver on previous promises, indicating confidence in the luxury market despite potential challenges [2][3] - The company aims to maintain a balance between client satisfaction and investor expectations, emphasizing a long-term approach to cash management [5][6] Financial Performance - The company has projected €8 billion in free cash flow over the next five years, with €7 billion allocated for dividends and buybacks, although some analysts expressed disappointment with these figures [4] - Margins are expected to exceed 40%, with aspirations for higher margins on specific models [6] Product Strategy - The company plans to limit the number of supercar owners to no more than 5%, maintaining exclusivity as a key aspect of its business model [8] - The electric vehicle (EV) target has been revised down to 20% of the lineup by 2030, previously set at 40%, reflecting a strategic adjustment based on market conditions [12][14] - The company is increasing the number of internal combustion engine models, indicating a focus on traditional offerings alongside EVs [13] Market Positioning - The company acknowledges challenges in the Chinese market, where it aims to maintain a market share below 10% while adapting its offerings to better fit local preferences [21][22] - There is a recognition of the competitive landscape, with peers like Porsche and BMW losing market share in China, prompting a reevaluation of the company's strategy in that region [20]

Core Insights - Broad Arrow Auctions, a Hagerty company, is set to host its first Zürich Auction on November 1, 2025, featuring over 60 highly collectible cars with notable Swiss provenance [1][2][4] Auction Details - The auction will take place at the Dolder Grand Hotel in Zürich, coinciding with the Auto Zürich motor show from October 30 to November 2, 2025 [2][4] - The auction catalogue includes prestigious models such as a 1966 Ferrari 275 GTB Alloy and a 1956 Jaguar D-Type, both of which are expected to attract significant interest from collectors [3][4] Featured Cars - The 1966 Ferrari 275 GTB Alloy is estimated to sell for CHF 2,200,000 - CHF 2,600,000 and has a continuous Swiss ownership history, making it highly desirable [5] - The 1956 Jaguar D-Type, estimated at CHF 5,250,000 - CHF 6,250,000, is one of only 71 produced and has never been used in competitive motorsport, enhancing its appeal [6] - Other notable cars include the 2024 Aston Martin Valkerie Spider (CHF 2,750,000 - CHF 3,250,000) and the 1991 Isdera Sbarro Espera Turbo S20E (CHF 140,000 - CHF 230,000) [3][4] Company Background - Broad Arrow Auctions is recognized as a leading global collector car auction house, having expanded its operations in Europe and established itself as the official auction house for prestigious events [16] - The company aims to provide exceptional quality cars to collectors and enthusiasts, reflecting a wide range of desirable price points [13]

Core Viewpoint - The article discusses the ten large-cap stocks that performed the worst in the previous week, raising questions about their potential inclusion in investment portfolios [1] Group 1: Stock Performance - The focus is on identifying the ten large-cap stocks that had the lowest performance last week, indicating potential concerns for investors [1] - The article implies that these stocks may present investment risks, suggesting a need for careful evaluation by portfolio managers [1] Group 2: Investment Considerations - Investors are encouraged to assess whether these poorly performing stocks are part of their portfolios, highlighting the importance of active portfolio management [1] - The article serves as a reminder for investors to stay informed about market trends and stock performance to make informed investment decisions [1]

Core Viewpoint - Ferrari's stock experienced a significant drop of nearly 16% following the unveiling of its first full-electric model, raising questions about whether this presents a buying opportunity for investors [1][10]. Group 1: Electric Vehicle Strategy - Ferrari is set to invest 4.7 billion euros between 2026 and 2030 to electrify its lineup, with expectations that battery-electric vehicles (BEVs) will account for 20% of sales by the end of the decade [5]. - The company is already partially electrified, with approximately 50% of its vehicle shipments being hybrids [5]. - Competitors like Lamborghini and Porsche are delaying or scaling back their electric vehicle plans due to weak demand, positioning Ferrari uniquely in the market [4]. Group 2: Financial Projections - Ferrari's long-term financial guidance for 2030 fell short of analyst expectations, projecting earnings of 11.50 euros per share on revenue of 9 billion euros, compared to the 9.9 billion euros analysts anticipated [8]. - The company slightly raised its outlook for 2025, expecting a profit of 8.80 euros per share on revenue of 7.1 billion euros [8]. Group 3: Market Position and Brand Strength - Ferrari maintains a strong competitive advantage with high margins and a unique brand image that is difficult for competitors to replicate [10]. - The performance of the Elettrica, Ferrari's first full EV, will be crucial in determining the future success of its electric lineup and its ability to resonate with core enthusiasts [9].

Core Insights - The automotive industry presents challenges due to its capital intensity, low growth, and cyclical demand, but opportunities exist for investment [1] - Ferrari distinguishes itself as a luxury brand with strong brand equity, prioritizing quality and maintaining supply below demand to enhance pricing power [2] Financial Performance - From 2014 to 2024, Ferrari's revenue and net income increased by 142% and 476%, respectively, with a trailing-10-year average operating margin of 24% [3] Valuation - Ferrari's stock has appreciated by 771% since its IPO in October 2015, leading to a price-to-earnings ratio of 49.4, which reflects its strong sales, profit growth, and brand strength, justifying a premium valuation [4]

I aim to invest in companies with perfect qualitative attributes, buy them at an attractive price based on fundamentals, and hold them forever. I hope to publish articles covering such companies approximately 3 times per week, with extensive quarterly follow-ups and constant updates.I manage a concentrated portfolio targeted at avoiding losers and maximizing exposure to big winners. This means that often I'll rate great companies at a 'Hold' because their growth opportunity is below my threshold, or their d ...

I'm Chris Rouseer from Bloomberg Pursuits and I'm here in historic Newport, Rhode Island to attend the Audrean Concord Elegance. Why don't you come along with me. What is a Concord Elegance.It's a car show for rare and extremely wellpreserved automobiles from the last century and even earlier. The Audrey Concord takes place at the Breakers, the former summer home of the Vanderbilt family. Collectors bring their cars from all over and judges award prizes based on quality of restoration, historical accuracy, ...

Company Overview - Ferrari's stock has shown consistent growth since its listing in early 2016, outperforming peers in Europe, with analysts expressing strong bullish sentiment ahead of the Capital Markets Day [1][2] - The company is expected to unveil its electric vehicle (EV) model next year, generating optimism among analysts and investors [2][3] Earnings and Growth Projections - Analysts noted a conservative outlook from Ferrari regarding its earnings growth compared to previous projections made during the last Capital Markets Day, which did not meet market expectations [3] - The company is producing a limited number of vehicles annually (around 10,000 to 12,000), raising questions about its compliance with future regulations on combustion engines [6][7] Electric Vehicle Market Dynamics - The growth of EV sales in Europe has not reached anticipated levels, leading to skepticism about the EU's goal to phase out combustion cars by 2035 [5] - There is a growing belief that lower-volume manufacturers like Ferrari may receive leniency regarding combustion engine regulations, allowing them to adjust their product plans accordingly [7] Competitive Landscape - The German automaker Porsche is facing challenges in the Chinese market due to aggressive pricing strategies from domestic manufacturers, impacting its profitability [9][10] - The transition from combustion to electric vehicles is leading to a commodification of performance, which could undermine the premium pricing that German companies have traditionally enjoyed [10][11]