This luxury car maker's stock has worked out well for long-term investors.Ferrari (RACE +1.10%) has a rich history in the automotive industry. It's known for its technical and design expertise and racing legacy that contribute to the supercars that it manufactures and sells worldwide. The company's vehicles can be viewed as collector's items, which supports Ferrari's ongoing success.But what has this top automotive stock done for investors in the past? Looking at Ferrari's performanceIn the past one-, thre ...

Skip to Main Content Skip to Search This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. Ferrari Stock Pops After Earnings Beat. Here's the Good News for Investors. By George Glover Updated Nov 04, 2025, 9:48 am EST / Original Nov 04, 2025, 7:05 am EST Share Resize Reprints I ...

Core Insights - Ferrari's luxury supercars are in high demand and highly profitable, with a stock increase of 578% over the past decade despite a recent dip following lower-than-expected 2030 guidance [1][11] Production and Exclusivity - Ferrari has increased production by 88% over the past 10 years while maintaining exclusivity, producing about 1,000 vehicles per model annually [3] - The limited availability of each model helps sustain high demand and allows for premium pricing [4] Product Mix and Innovation - The company has successfully developed hybrid vehicles, which accounted for 51% of sales in 2024, and will begin deliveries of its first electric vehicle next year [4][5] - Ferrari is navigating the challenges of the automotive market well by offering a mix of gasoline-powered supercars, hybrids, and soon, battery-powered sports cars [6] Financial Performance - Ferrari's operating margin is approximately 29%, significantly higher than many competitors in the industry [7] - Management projects that the operating margin will remain "at least 30%" by 2030 due to product mix, limited-edition models, and vehicle personalizations [9] - Earnings per share for the first half of the year were 4.68 euros ($5.42), reflecting a more than 10% increase from the previous year [10] Market Position - Despite a recent share price drop, Ferrari's stock has more than doubled over the past five years, outperforming the S&P 500's 86% gain [11] - The company is expected to continue driving demand while maintaining high operating margins, suggesting potential for long-term stock performance [11]