Ferrari N.V., through its subsidiaries, engages in design, engineering, production, and sale of luxury performance sports cars worldwide. The company offers range, special series, Icona, and supercars; limited edition supercars and one-off cars; and track cars. It also provides racing cars, and spare parts and engines, as well as after sales, repair, maintenance, and restoration services for cars; and licenses its Ferrari brand to various producers and retailers of luxury and lifestyle goods. In addition, the company operates Ferrari museums in Modena and Maranello; Il Cavallino restaurant in Maranello; and theme parks in Abu Dhabi and Spain. Further, it provides direct or indirect finance and leasing services to retail clients and dealers; manages racetracks; develops and sells a range of apparel and accessories; and operates franchised and owned Ferrari stores. The company also sells its products through a network of authorized dealers operating points of sale, as well as through its website. Ferrari N.V. was founded in 1947 and is headquartered in Maranello, Italy.

Ferrari N.V.

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Слабый индекс, значительно вырос. Рынок не поддерживает быков.

Weak index, significantly up. The market does not support the bulls.

Слабый индекс, незначительно вырос

Key Points
The U.S. federal debt currently represents 123% of the country’s GDP, close to the highest level ever.
This precarious financial position supports persistent inflationary pressure and elevated interest rates.
Companies with pricing power that operate from a position of financial strength are in good shape.
Besides the artificial intelligence trade, investors have been obsessed with any macroeconomic news that hits headlines. And it's hard to find a story in recent weeks that captured the market's attention like the U.S surpassing $40 trillion in gross federal debt. By any measure, this is an absolutely mind-boggling number.
The debt balance has expanded by 377% in the past two decades. And it currently represents 123% of the country's total GDP figure. The Congressional Budget Office estimates that it will continue climbing, reaching $64 trillion by 2036.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Investors had better get used to hearing more about the U.S. national debt problem. Here's what this macro trend means for your portfolio in 2026 and beyond.
Nothing will change
The U.S. has the world's largest and most advanced economy, driven by dominance in the technology sector. It controls the global reserve currency in the dollar. And it has the most robust and liquid capital markets. These advantageous traits support the argument that the nation can keep borrowing indefinitely.
Of course, this can continue only as long as buyers of Treasuries trust that they will get paid back. So far, this hasn't been an issue. And things that appear unsustainable can go on a lot longer than people anticipate.
It makes sense for the government to embark on stimulative measures during recessions or other adverse shocks. This was precisely what happened during the global financial crisis toward the end of the 2000s, and to help boost the economy when the COVID-19 pandemic hit. The government steps in to keep things running.
What's interesting to see, though, is that the debt burden has kept rising even though the economy is on solid footing. Through the first 10 months of fiscal 2026, the Treasury Department ran a deficit of $1.8 trillion, 10% higher than in the same period last fiscal year. The U.S. spends more on interest payments than it does on national defense.
No matter what politicians say, the government isn't able and willing to cut spending. Just look at the DOGE (Department of Government Efficiency) initiative, which was by any account a failure.
And raising taxes isn't a popular campaign platform, unless politicians want to increase their chances of losing. This means that the debt will keep rising. Furthermore, this supports elevated inflation and interest rates. This will certainly be true relative to the environment we witnessed during much of the 2010s.
Own inflation beneficiaries
The investment implications are clear. In this kind of macro backdrop, investors should favor high-quality businesses, particularly those that have pricing power and impressive financials. This isn't necessarily a buy recommendation. But these are companies to dig further into here.
Apple (NASDAQ: AAPL) comes to mind. Its brand resonates strongly with consumers around the globe. Its hardware devices are always in demand, commanding premium prices. And the business is one of the most profitable in the world. On $364 billion in revenue through the first nine months of fiscal 2026, Apple raked in $110 billion in free cash flow.
Another great example is Ferrari (NYSE: RACE). This company doesn't behave like a typical mass-market car manufacturer. Ferrari intentionally caps supply, supporting robust demand and pricing power for its luxury vehicles. And its operating margin was a stellar 31% last quarter.
Investors might not view Visa (NYSE: V) and Mastercard (NYSE: MA) as having pricing power. However, they are certainly beneficiaries of inflation. As consumers are forced to spend more on goods and services, these payment networks are able to process higher volumes, which translates to revenue growth. It also helps that they are incredibly profitable, with net income margins that have averaged more than 45% in the past five years.
These four businesses are set up to continue thriving in the face of mounting U.S. national debt.
Should you buy stock in Apple right now?
Before you buy stock in Apple, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Apple wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $421,997!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,413,876!*
Now, it’s worth noting Stock Advisor’s total average return is 978% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Ferrari, Mastercard, and Visa. The Motley Fool has a disclosure policy.

The U.S. National Debt Just Surpassed $40 Trillion. Here's What This Means for Your Portfolio in 2026 and Beyond.

Key Points
Despite strong Q2 results, Tesla's automotive segment has been hurt by macro and industry headwinds in recent years.
Ferrari's revenue and earnings beat analyst estimates in the second quarter.
A wide moat, proven pricing power, and durable financial performance are why the Buffett would appreciate Ferrari’s business.
Warren Buffett made his career as head of Berkshire Hathaway largely by finding businesses that he could own forever. Holding shares of companies that can increase revenue and profits in a steady fashion, known as compounders, can lead to tremendous long-term results. Individual investors should try to incorporate this philosophy into their portfolio strategies.
Buffett was never very fond of automotive stocks. But there's one carmaker whose shares have risen 746% during the past decade (as of Aug. 12) that might convince him that an attractive investment candidate can be found even in a difficult industry.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
What market-beating stock am I referring to? To be clear, it's not Tesla (NASDAQ: TSLA), though you surely know its name.
Tesla's auto segment is unpredictable
During the 2026 second quarter, Tesla reported a 23% year-over-year jump in automotive revenue. Its electric vehicle (EV) deliveries rose 25%.
On the surface, these are great numbers. However, higher gas prices probably helped to boost the results, and that may not last.
And since hitting a peak in 2023, Tesla's auto revenue has failed to report consistent growth. Its gross margin has also been hurt by lower average selling prices.
The business is heavily exposed to macroeconomic conditions, primarily elevated interest rates. This can make buying cars more expensive for consumers.
Competition is also fierce in the EV market. Tesla is no longer the only manufacturer of these plug-in battery-powered cars. Legacy automakers have their own offerings. And foreign companies, especially those in China, also sell compelling EV models.
Ferrari's latest financial results beat estimates
Ferrari (NYSE: RACE) is immune to many of those same variables, macro pressures, and competitive forces that hurt Tesla and other mass-market auto businesses. Its operations are unique, as it behaves more like a luxury goods purveyor than a car manufacturer. Buffett would appreciate this setup, which runs counter to the natural cyclicality of the auto industry.
In Q2, Ferrari reported revenue of 1.9 billion euros ($2.2 billion), up 8.4% year over year. It also posted 2.62 euros in diluted earnings per share, 10% higher than the second quarter of 2025. These headline figures beat Wall Street expectations.
The company shipped 3.7% fewer cars in Q2 than it did in the year-ago period. But this didn't prevent operating income from rising 9.5%.
Ferrari's latest results were driven by higher-than-anticipated personalizations, as customers spend more money to tailor every detail of their cars. For the business, this trend can bolster incremental high-margin revenue. And it further differentiates Ferrari from the rest of the industry.
Meeting Buffett's requirements
There are three obvious reasons Ferrari would pass Warren Buffett's quality screen.
The presence of a wide economic moat is the first factor. Ferrari has arguably the strongest brand in the auto industry and one of the most recognizable names in any sector. This intangible asset is supported by management's relentless focus on keeping supply tight, which aids the exclusivity, prestige, and status that come with owning one of these supercars.
There is proven pricing power. These expensive vehicles are Veblen goods, meaning that demand for them could actually increase if the price tag goes up. The target demographic, customers who probably have at least a seven-figure net worth, view these cars not as utility products but mostly as collector's items.
Ferrari vehicles can cost hundreds of thousands of dollars at the low end. There are special editions, like the F80 released in 2024, that carried a sticker price of $3.7 million.
And lastly, as alluded to already, Ferrari's financial performance has been impressive throughout its history. Its operating margin during the past decade averaged a phenomenal 25.2%, a level that's surely the envy of the rest of the industry. And the financial gains are steady and predictable, as this is a recession-resilient business.
Individual investors should consider buying shares of Ferrari today.
Should you buy stock in Ferrari right now?
Before you buy stock in Ferrari, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Ferrari wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $400,209!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,375,393!*
Now, it’s worth noting Stock Advisor’s total average return is 964% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway, Ferrari, and Tesla. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

1 Market-Beating Auto Stock Up 746% in the Past 10 Years That Warren Buffett Would Agree Is a Compounder (Hint: It's Not Tesla)

Key Points
The automotive industry is evolving into a higher-margin business as software becomes a bigger part of the vehicle.
Ferrari has a long list of competitive advantages, and it's a buying opportunity after the Luce failed to impress with its design.
Stellantis has a big turnaround plan, and after shedding 70% of its value over the past three years, it offers significant upside.
The automotive industry is poised to potentially evolve more over the next decade than it has in the past 50 years -- arguably even longer.
A massive shift from internal combustion engine powertrains to electric vehicles (EVs) has also spurred the development of software-defined vehicles and driverless vehicles, and driven a rise in services and subscription offerings, which are rapidly changing how savvy investors view auto stocks as new high-margin businesses.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Investors looking to get in early on the evolving auto industry should start by considering these two stocks with massive upside potential.
No love? No problem.
Ferrari (NYSE: RACE) is a unicorn in the automotive industry with a long list of competitive advantages, lucrative margins that dwarf the industry, a powerful brand and racing heritage, and a loyal, ultra-wealthy consumer base that is less impacted by typical economic downturns, making the stock more recession-resilient. But over the past year, it has traded well below its average price-to-earnings ratio, allowing investors to buy an excellent business at a discount.
One reason for the recent pessimism surrounding Ferrari was the launch of its first full electric vehicle, the Luce, and the initial reaction to the unusual design, which was not at all flattering. Making investors more anxious was the fact that rival Lamborghini officially canceled plans for its first full-electric vehicle, the Lanzador, citing customer demand for a full-electric Lamborghini as "close to zero."
But Lamborghini's hesitation and internet backlash -- from people highly unlikely to be Ferrari customers anyway -- didn't slow Ferrari down. The company announced it has already sold every Luce it plans to build this year -- about 500 vehicles -- and it did so in less than two months, per the Financial Times. It sold out of the Luce allotment before a single one was even delivered; deliveries don't begin until October.
The Luce selling out isn't about the sales volume, but it does emphasize numerous competitive advantages that make it one of the top, if not the top, automotive stocks in the market. The Luce, with a base price of roughly $640,000, already sits near the top of Ferrari's price ladder and demonstrates the company's incredible pricing power, not to mention loyal consumers willing to buy nearly anything it produces. Branching into full EVs represents incremental volume and a bigger total addressable market, and Ferrari noted that many Luce buyers have never owned a Ferrari before.
At a time when most automakers are losing money on their EVs, Ferrari proves once again that it operates in a whole different world than traditional automakers. At its current valuation, it has plenty of upside for investors and far less risk than most auto stocks.
Big-time turnaround
Stellantis (NYSE: STLA), on one hand, appears to be an automaker nobody wants to invest in. It took massive charges on an EV strategy it pulled back on, has shed 70% of its value over the past three years, has posted seven consecutive years of annual sales volume declines through 2025, and has other issues. On the other hand, Stellantis has an excellent turnaround plan and is investing $70 billion to implement it over the next five years.
Stellantis' five-year strategic plan will have many moving parts globally. Two of the most important strategic initiatives are affordability and investing in North America, which remains its profit engine. The push for affordability comes with significant unmet demand for vehicles priced under $40,000, especially as the price of new vehicles continues to hit new record highs.
In a move that could quickly reverse its market share losses, Stellantis promised nine new North America vehicles priced under $40,000, and at least two priced under $30,000. Not only will these high-demand, more affordable vehicles help reverse market share losses, but they will also improve the automaker's poor factory utilization, which will support margin growth.
North America will be crucial to Stellantis' overall turnaround, and about 60% of the strategy's product and brand investments will be directed there to boost offerings and launch more lucrative vehicles from its Jeep and Ram brands. Stellantis is already gaining traction, with its recent launches returning the automaker's North American sales volume to year-over-year growth for the past four quarters.
Stellantis is focused on rebuilding profitability, reversing declining sales, and improving factory utilization to support margins. Because investors have drastically sold it off over the past three years, it might have the most upside amid its potential turnaround of any auto stock in the market.
Time to buy?
This is an interesting time for the automotive industry, with multiple shifts and evolving technology that is increasingly intertwined with lucrative software and even artificial intelligence (AI). Both Ferrari and Stellantis offer immense upside over the next five years, partly due to their recent sell-offs, and savvy investors looking to get into the evolution of the auto industry toward a higher-margin business would be wise to look more closely at those two overlooked stocks.
Should you buy stock in Stellantis right now?
Before you buy stock in Stellantis, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Stellantis wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $399,832!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,374,595!*
Now, it’s worth noting Stock Advisor’s total average return is 968% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of August 11, 2026.
Daniel Miller has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Ferrari. The Motley Fool recommends Stellantis. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

2 Hugely Overlooked Auto Stocks With Massive Upside

Key Points
This, despite revenue and profitability growth that was lofty for the auto industry.
The high-end auto maker also raised its annual guidance.
Expectations were high for the exceptional auto company Ferrari (NYSE:RACE) ahead of its second-quarter results, which were published Thursday morning. It didn’t quite meet those hopes, and the stock was down in price heading into the weekend.
It wasn’t down by much, however, which to me shows that investors still think well of it despite the quarterly misses. Let’s pop the hood to see what drove Ferrari during the period, and determine whether its shares are a buy.
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Image source: The Motley Fool.
Racing ahead
Ferrari booked nearly 1.94 billion euros ($2.23 billion) in the period, which bettered the year-ago quarter by 8%. That, despite a slight (4%) decline in total shipments, to 3,366 vehicles. Net income, both headline and adjusted for special and one-off items, rose by a slightly higher 9% to 463 million euros ($533 million), or 2.62 euros ($3.02) per share.
Analysts tracking the automotive company’s stock were expecting a more revved-up quarter, however. Their consensus estimates were 2.15 billion euros ($2.48 billion) for revenue and 2.85 euros ($3.28) per share for net income.
The quarter was marked by the introduction of a new vehicle from the storied Italian manufacturer, the all-new Luce electric vehicle (EV), which was unveiled in May. Ferrari had held off on entering the EV market for years, but even as EV sales have been shrinking lately, many consumers still prefer more environmentally friendly technology.
The Luce announcement wasn’t greeted warmly by many Ferrari-watchers and aficionados. That’s not particularly surprising, as fanbases can be very protective of what they consider to be a company or brand’s legacy. The classic image of Ferrari as a carmaker is a speedy vehicle powered by an engine furiously burning gasoline. It’s not a vehicle plugged into a charger. To a degree, lingering negative sentiment on the Luce’s introduction might have contributed to the post-earnings sell-off. Some folks are surely resistant to the company’s belated embrace of EV technology.
They might also have been dismayed by the shipment dynamics in the quarter. Not only did this metric decline overall, but it also fell in three of the company’s four tracked regions — Americas, mainland China, Hong Kong and Taiwan, and the rest of Asia-Pacific (APAC). The one gainer for the European company was Europe, the Middle East, and Africa (EMEA), which saw a 13% increase to 1,856 (comprising 55% of the total, incidentally).
Yet there were other elements about the quarter to like besides those increases in fundamentals. One was the composition of its foundational auto revenue (responsible for 84% of the total, with smaller contributions from sources such as sponsorships and the company’s share of Formula 1 World Championship commercial revenue). Ferrari said the double-digit increase was due to a “positive product mix” and an increase in auto personalizations. Lower depreciation, on the back of model change-overs, was a factor in the bottom-line boost.
Accelerated guidance
Those factors convinced Ferrari management that the coming quarters will be better than expected. The company raised its guidance for full-year 2026, lifting its revenue projection to around 7.6 billion euros ($8.7 billion) from 7.5 billion euros ($8.6 billion) previously. The company’s 2025 top line was 7.15 billion euros ($8.2 billion).
It also added a few euro cents to its adjusted net income per share forecast; this is now 9.68 euros ($11.14), up from at least 9.45 euros ($10.88). The new guidance is even more comfortably above Ferrari’s 2025 adjusted net income of 8.96 euros ($10.32) per share.
For an automotive company, Ferrari looks expensive at first on its valuations (like a forward P/E of almost 35). But we have to bear in mind two factors that help command that premium.
Firstly, as a maker of limited-run, very high-end specialty vehicles, the company stands out from mass-market peers like General Motors (NYSE:GM), Toyota (NYSE:TM), or even EV king Tesla (NASDAQ:TSLA). In fact, it’s priced more as a maker of luxury goods than a car company.
Second, in a business that often runs in tandem with economic cycles, Ferrari is quite recession-proof. Because it targets the very top of the car-buying market, its customers tend to set aside money for high-end autos no matter how the economy might be sputtering. The strong demand for Ferraris has never flagged significantly, as is apparent throughout the company’s history.
Given its uniqueness, the admirable strength and longevity of its brand, and its ability to post meaningful growth while being bold enough to advance its business (with the Luce, for example), Ferrari is a very attractive company. And even though that stock isn’t cheap, it’s a buy to me.
Should you buy stock in Ferrari right now?
Before you buy stock in Ferrari, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Ferrari wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $386,727!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,232,139!*
Now, it’s worth noting Stock Advisor’s total average return is 906% — a market-crushing outperformance compared to 208% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of August 2, 2026.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Ferrari and Tesla. The Motley Fool recommends General Motors. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Is Ferrari a Buy After Its Latest Earnings Report?

(RTTNews) - Italian luxury sports carmaker Ferrari N.V. (RACE) reported Thursday that its net profit for the second quarter increased to 463 million euros or 2.62 euros per share from 425 million euros or 2.38 euros per share in the prior-year quarter.
Net revenues for the quarter increased 8 percent to 1.94 billion euros from 1.79 billion euros in the same quarter last year. It was up 11 percent at constant currency.
Shipments for the quarter totaled 3,366 units, down 128 units from last year.
Looking ahead for fiscal 2026, Ferrari now projects adjusted earnings of higher than 9.68 euros per share on net revenues of around 7.6 billion euros.
Previously, the company expected adjusted earnings of higher than 9.45 euros per share on net revenues of around 7.50 billion euros.
In Thursday's pre-market trading, RACE is trading on the NYSE at $395.12, up $9.70 or 2.52 percent.
For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Ferrari Q2 Net Profit Up 9%; Boosts FY26 Outlook

In trading on Monday, advertising shares were relative leaders, up on the day by about 3.9%. Leading the group were shares of Grandstand, up about 8.7% and shares of Groupon up about 6.8% on the day.
Also showing relative strength are vehicle manufacturers shares, up on the day by about 3.9% as a group, led by LiveWire Group, trading higher by about 68.5% and Ferrari, trading higher by about 4.7% on Monday.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Monday Sector Leaders: Advertising, Vehicle Manufacturers

Key Points
Thanks to its incredible brand power, Ferrari possesses what is arguably the widest moat in the auto sector.
Ford Motor Company's profit growth is significantly weaker than what the Italian carmaker has registered.
Ferrari is deserving of a much higher price-to-earnings ratio than Ford.
Since hitting a record high of $511.75 in July last year, Ferrari (NYSE: RACE) stock has backtracked. Shares currently trade 28% below their peak (as of July 20). Investors were concerned with management's lower-than-expected long-term forecast revealed last October. And the company's first fully electric vehicle wasn't well received.
Ford Motor Company (NYSE: F) is currently winning the race by a mile. The domestic automotive stock has climbed 26% in the past 12 months. Investors cheered management's latest move of launching a battery segment to meet robust demand amid the ongoing artificial intelligence boom.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
But I'm less optimistic about Ford. My prediction is that the Italian luxury brand will deliver a better return than the Detroit carmaker over the coming decade.
Ferrari has a superior competitive position
Ford was founded in 1903. That long history doesn't diminish the fact that this business doesn't necessarily operate from the strongest competitive position. This is generally true for mass-market automakers.
Competition is incredibly fierce. This comes from domestic peers. However, international rivals have also given Ford a run for its money, particularly Asian manufacturers.
And demand is highly cyclical. Consumer behavior, which is dependent on macroeconomic forces, can dictate revenue trends.
Ferrari's competitive position is excellent. It possesses arguably the widest economic moat in the auto sector. Its brand is the star of the show. The Ferrari name is globally recognized for its rich heritage of racing performance and exceptional design. This is a luxury brand.
That standing is bolstered by management's focus on keeping a lid on supply, intended to support outsize demand. Consequently, Ferrari has pricing power. Some of its limited-run models, such as the F80 unveiled in 2024, are produced in extremely low quantities and carry starting price tags in the seven figures.
The same demand dynamics that apply to Ford are irrelevant to Ferrari. The latter's customers, who are the wealthiest people in the world, are resilient to economic headwinds.
Profitability is what drives stock performance
Ferrari's brand strength directly hits the income statement. During the first three months of this year, it registered an outstanding operating margin of 29.7%, with credit going to the aforementioned pricing power. This is light-years ahead of Ford's 5.4%.
Besides margins, profit growth should grab investors' attention. In the past decade, Ferrari's diluted earnings per share (EPS) rose at a compound annual rate of 18.7%. This is a robust pace that has contributed to its share price gaining 787% over the last 10 years.
Ford's trend is much more disappointing. It posted diluted EPS of $0.61 in Q1 2016. That figure barely increased, coming in at $0.63 in the most recent quarter, equating to a 10-year annualized rate of 0.3%. This explains why Ford shares have risen by less than 3% in the past decade.
The overall automotive industry is extremely mature, limiting Ford's potential. But Ferrari has a much better growth runway. It sold 13,640 cars in 2025, up 50% from 9,119 in 2020. The niche focus adds greater revenue upside as it sells more vehicles over time.
Pay the premium
Valuation is one area where Ford comes out on top, and it's not even close. Its cheap valuation is certainly due to its very capital-intensive business, characterized by low growth and earnings.
Its shares trade at a price-to-earnings (P/E) ratio of 11.3, representing a massive 69% discount to Ferrari's multiple, which currently sits at 35.9. Investors shouldn't take this as a reason to avoid the stock, though, since this is such a high-quality enterprise.
Ferrari's P/E ratio has fallen by 31% over the past 12 months. Compared to the rest of the market, this doesn't appear to be a bargain opportunity. However, not all companies should be viewed in a similar light. Ferrari might even be deserving of a valuation expansion if it continues to deliver strong financial results.
Should you buy stock in Ferrari right now?
Before you buy stock in Ferrari, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Ferrari wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $370,332!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,272,280!*
Now, it’s worth noting Stock Advisor’s total average return is 904% — a market-crushing outperformance compared to 208% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of July 22, 2026.
Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Ferrari. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Prediction: Ferrari Is a Better Buy Than Ford for the Next Decade

Key Points
Ferrari's strict exclusivity drives its pricing and brand power, as well as lofty margins.
BYD's vertical integration keeps costs impressively low, enabling its overseas sales to soar.
GM has spent tens of billions of dollars to buy back shares and drive shareholder returns.
The narrative surrounding the automotive industry hasn't always been a great one for investors. The industry is known for being brutally competitive, highly capital-intensive, unpredictable, and cyclical. And worse than anything, it's known for razor-thin margins.
That said, those narratives are changing as vehicles and the industry evolve toward more technologically advanced automobiles, including autonomous driving technology and other high-margin services. The following three stocks have all thrived in their own unique ways and are poised to beat the market going forward.
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Ferrari (NYSE: RACE) is a unicorn in the sense that it flips nearly all traditional automotive industry stereotypes on their head. Not only does Wall Street see the stock -- and value it -- more as a luxury brand than a traditional automaker, but Ferrari also earns its historically lofty valuation in multiple ways. First, as you can see in the graphic below, it boasts gross margins above 50%, like many luxury stocks, and dwarfs those of competitors.
Ferrari's EBITDA (earnings before interest, taxes, depreciation, and amortization) and operating margins are also 2 to 3 times higher than most of its competitors and are consistently rising. This emphasizes the company's ability to hold durable competitive advantages in an industry not known for having economic moats.
Another aspect of the automotive industry that Ferrari flips on its head is its resistance to economic downturns and cyclicity. That's driven by two factors: Ferrari's strict exclusivity and hyper-wealthy consumer base.
Because Ferrari limits the volume of production well below demand, there are always consumers lining up to buy a vehicle when the opportunity presents itself, regardless of the economic situation. That factor is only amplified by the fact that the ultra-wealthy consumer base is far more insulated from traditional economic downturns, changes in interest rates, and other factors.
Currently, Ferrari isn't cheap by automotive industry standards, but its valuation is cheaper than its average over the past five years. That's in part because of internet backlash about the design of its first fully electric vehicle (EV), the Luce -- but it's going to sell out anyway, and over 40% of Ferrari's shipments in 2025 were hybrids. Ferrari is built more for the future than people give it credit for, and it's been winning for a long time.
BYD
BYD (OTC: BYDDY) (OTC: BYDDF) is another global automaker juggernaut, only in ways different from Ferrari. BYD switched to selling only EVs years ago and has watched its reach expand globally and sales volume soar, even passing Tesla in global EV sales last year. It wasn't even particularly close, with BYD selling 2.26 million full EVs to Tesla's 1.64 million. And when you include plug-in hybrids, that number from BYD jumps to 4.6 million vehicles.
One big reason for BYD's success is its ability to undercut the competition on price without sacrificing its vehicle quality or advanced EV technology. BYD is able to keep its costs impressively low through its unparalleled vertical integration and growing scale. It manufactures its own Blade batteries and semiconductors and generates large cost efficiencies that position it better than competitors amid price wars, which China's market is currently facing.
These are wildly affordable and well-designed vehicles, and BYD's sales are surging overseas in Latin America, Southeast Asia, and Europe. In fact, because of China's current price war and brutal competition, BYD's export business has turned from a nice surprise to a primary growth engine. As recently as June, the company's overseas sales jumped nearly 95% year over year to a record 175,349 vehicles in only one month. BYD's foreign markets now generate 43% of total sales, which helps offset a 22% domestic decline in China as subsidies and tax changes weigh on the market.
BYD is thriving globally, and when the Chinese market turns around, perhaps after some much-needed consolidation, it will be as well positioned as ever to profit for its investors.
General Motors
A big advantage for General Motors (NYSE: GM) is its co-dominance in full-size internal combustion engine trucks and SUVs -- a dominance it shares with crosstown rival Ford Motor Company. These full-size trucks and SUVs cost only marginally more to produce than sedans and carry far higher price tags and much fatter margins. That's why Ford went so far as to end production of all sedans in the U.S. market, other than its iconic Mustang. But keep in mind that the Mustang Mach-E even outsells the traditional internal combusion version.
While Ford is also well-known for its lucrative dividend that often yields between 4% and 5%, General Motors takes a different approach to its rival: share buybacks. For years, while GM's price-to-earnings ratio traded in the single digits, the company spent tens of billions of dollars to buy back an enormous number of shares. The market finally caught on toward the end of 2025, pushing its valuation roughly 3 times higher.
GM also has its eye on the future, expanding its high-margin -- think tech company margins -- OnStar and Super Cruise products and services. GM is playing the long game with this strategy and is giving every new GM vehicle eight years of basic OnStar and, in vehicles with the capability, three years of Super Cruise. GM is embedding these long-term subscription packages, hoping to drive renewal rates of these high-margin services higher. Early signs are positive, as the attach rate has consistently landed in the 30% to 40% range after the initial prepaid period ends.
Top global autos
These three automakers are all global juggernauts in their own way. Whether you prefer the pricing and brand power of Ferrari, BYD's intense vertical integration and low cost efficiencies, or GM returning massive value to shareholders through buybacks, they are all positioned to continue doing exactly what made them top, unique automotive stocks going forward.
Should you buy stock in Ferrari right now?
Before you buy stock in Ferrari, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Ferrari wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $397,351!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,304,257!*
Now, it’s worth noting Stock Advisor’s total average return is 937% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of July 16, 2026.
Daniel Miller has positions in Ford Motor Company and General Motors. The Motley Fool has positions in and recommends Ferrari and Tesla. The Motley Fool recommends BYD Company and General Motors. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Investors Should Stop Overlooking the World's Top 3 Auto Stocks

Key Points
Tesla is quickly transitioning from automaker to a technology and AI business.
Ferrari has separated itself from mainstream auto companies through lucrative pricing power and lofty margins.
Many investors may not know that roughly half of Ferrari's sales volume is already electrified via hybrids -- and it's prepared for the future.
To say Tesla has been a solid investment might be the understatement of the century. A $10,000 purchase during Tesla's initial public offering would be worth roughly $2.57 million now.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
It's also fair to say that some investors might not want to take on the added risk from Tesla as it drives toward a future that includes humanoid robots, driverless vehicles, and artificial intelligence (AI). It's not the same electric vehicle (EV) maker it once was, for better or worse.
If that business transition has you reconsidering your investment options, there's another automaker -- arguably the best auto stock out there -- named Ferrari (NYSE: RACE) that warrants your attention. Here are three reasons to consider it if Tesla is no longer an investment you're comfortable with.
1. Money, money, money!
Ferrari has long separated itself from the traditional automotive industry investment thesis. The industry is known for being capital intensive, cyclical, and for having thin margins. As you can see in the graphic below, Ferrari's margins for earnings before interest, taxes, depreciation, and amortization (EBITDA) dwarf the mainstream automotive industry.
Ferrari's gross profit margins routinely check in above 50%, and often Wall Street values and views the automaker as a luxury goods stock. That's more than fair considering that Ferrari's pricing power and brand image enable it to deliberately limit production to drive scarcity and exclusivity. The result is that Ferrari simply doesn't need discounts or incentives to sell vehicles, and that means more money flows to the bottom line.
That's an important topic for Tesla investors because the company still operates in the mainstream automotive business, where discounts, price wars, and other factors can easily hinder margins. Not only does Ferrari generate much higher margins at any level you choose to look, but those margins are much more stable than Tesla's and consistently rising.
This is a good segue into what drives Ferrari's margins.
2. "One fewer car ..."
Another way Tesla can't match Ferrari is in the latter's brand image and pricing power, which help drive the previously mentioned lofty margins. Enzo Ferrari's famous mantra was to build "one fewer car than the market demands."
It's a simple concept that few can pull off, but Ferrari does it famously. While Tesla hopes to produce millions of vehicles for a mass market, the Italian automaker produces under 15,000 units a year, creating exclusivity and an emotional draw. It's why Ferrari is a lifestyle luxury brand, not a traditional automaker.
Here's an example of how powerful the brand already is: The company spends nothing on advertising, essentially. Instead, the Scuderia Ferrari Formula 1 team is the engine that powers its marketing and reach. It's not all show and no-go, either, because racing technology filters down into its high-end models, helping support their sky-high price tags.
Another example of how different Tesla and Ferrari are is that the former still needs to fuel demand through price cuts at times, or with other incentives such as financing. Ferrari, on the other hand, won't even let you buy its limited-edition top-tier supercars unless you have already purchased its other vehicles in the past.
Buying a Ferrari takes a lot of money, but it's not all about that -- the company has to invite you into the club. These factors, among many more, make its brand and the pricing power nearly unmatched.
3. A different consumer base
Many investors throw around the phrase "Ferrari is recession-proof," but to be fair, it's closer to "recession-resilient." Its buyers have ultra-high net worths and are thus highly insulated from traditional economic downturns, inflation, or moves in interest rates. They can afford multimillion-dollar hypercars even amid a global recession, and they give the company a much more stable business that avoids the auto industry's historical cyclicity.
The loyalty that the brand generates is as intriguing as anything else the company does. It even ranks its customers based on how many cars they currently own, how long they've owned them, and their participation in official Ferrari brand events. In return, only the most loyal multicar owners are invited to purchase extremely exclusive models, which are highly priced and sell out even before being publicly announced.
What it all means
Ferrari is just a different animal, and while it shares the industry with mainstream automakers, they really operate in different worlds. It's evident in the company's lucrative margins that continue to rise, its powerful global brand and prestige that support extreme pricing without any discounts and incentives, and its supremely loyal consumer base.
Those are all things Tesla wants to generate one day, but right now, Ferrari is an excellent investment if you want to buy Tesla but are unsure about its future direction.
Should you buy stock in Ferrari right now?
Before you buy stock in Ferrari, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Ferrari wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $398,160!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,249,202!*
Now, it’s worth noting Stock Advisor’s total average return is 918% — a market-crushing outperformance compared to 209% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
Daniel Miller has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Ferrari and Tesla. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Want to Buy Tesla? 3 Reasons to Buy This Luxury Automaker's Stock Instead.

Key Points
After Ferrari's Luce unveiling, the stock promptly sold off 6%.
Unbeknownst to many, Ferrari derives roughly half of its annual sales from hybrids.
Despite the chatter online, actual Ferrari buyers aren't skipping a beat.
It was always going to be a groundbreaking moment when Ferrari (NYSE: RACE) unveiled the Luce, its first-ever full electric vehicle. Ferrari pushed the boundaries a bit too far for some people, and the internet was ablaze after the May launch with memes and backlash revolving around the Luce's minimalist and un-Ferrari-like design, designed by industry outsider and ex-Apple designer Jony Ive's firm. The backlash was intense, and then Ferrari's chief marketing and commercial officer, Enrico Galliera, left roughly a month after the Luce unveiling.
The Luce launch is an important one, and it sets the precedent for how Ferrari transitions into a new electrified era, despite its history and heritage of high-end racing and the roar of gasoline-powered engines. There's already evidence that the Luce will be successful, and history reminds us many times over that a dustup-to-success phenomenon isn't unusual.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Numbers don't lie
Let's cover some simple numbers and timelines. The first hint that the Luce would be fine, as would sales and demand, was from Ferrari's CEO himself, Benedetto Vigna, who, per Bloomberg, confirmed that the Luce was receiving orders from existing and new customers and that the order book already extended toward the end of 2027. An order book soaking up production toward the end of 2027, for a new EV that starts deliveries this October, suggests Ferrari customers aren't the ones driving backlash on the internet (who would have guessed?).
The Chinese market perhaps missed the kerfuffle, because, according to CarNewsChina, all of the country's allotment of Luce vehicles starting at roughly $586,000 were sold "immediately." To be fair, there have since been conflicting reports that Ferrari may still be accepting orders in China, though it's unclear if that's due to additional supply or false initial reports. To be fair a second time, Ferrari could slap a logo on a cardboard box with four wheels, maybe only three, and almost certainly sell out of the small allotment of units.
Finally, while Ferrari's stock quickly sold off 6% the day of Luce's unveiling, since the day after, the stock is up over 10% while the S&P 500 has remained slightly lower.
History tells us this
History tells us this has happened plenty of times before. Let's start with Detroit automaker Ford Motor Company (NYSE: F), when it ditched the iconic Mustang design and moved to the electric Mustang Mach-e version. Mustang purists and fans cried foul and similarly set the internet ablaze. It was doomed to be a flop, many said. But by 2024 the Mustang Mach-e had sold 51,745 units for a 27% increase over the prior year, while the traditional Mustang had sold 44,003 units for a 9.5% drop compared to the prior year. In 2025, that growth trend would have been similar if not for the ending of the $7,500 federal EV tax credit, but even so, the electric Mustang still won the head-to-head sales battle by roughly the same number of units.
Another example: Volkswagen-owned Lamborghini launched the Urus in 2018 and faced wild criticism for taking a sharp turn away from its low-slung, aggressive, sleek hypercars to more of a luxury SUV. Then, however, the Urus became an absolute status symbol among the ultra-wealthy and essentially doubled Lamborghini's global sales volume. That example held true for Porsche's Cayenne as well as Ferrari's own Purosangue. Change is rarely fun, but sometimes it's essential.
What it all means
This all goes to say that if you're an investor interested in owning shares of arguably the best automotive stock in the world, don't let the backlash against the Luce dissuade you. Early evidence shows that the Luce will be fine, history tells us that this has happened many times before, and Ferrari still has many high-quality attributes of a strong business that can fight off typical automotive industry narratives such as low margins and cyclicality.
As you can see in the graph above, Ferrari's margins dwarf those of its automotive competitors, and Wall Street gives it valuations closer to those of high-end luxury stocks -- and rightfully so. Ferrari's business is also far less susceptible to economic downturns and industry cyclicality because, simply put, ultra-wealthy Ferrari consumers aren't impacted as much financially. Ferrari is a fine-tuned business machine that races and wins on Sunday and sells on Monday, and the stock is still a smart buy for those willing to dig into the research.
Should you buy stock in Ferrari right now?
Before you buy stock in Ferrari, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Ferrari wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $418,761!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,195,804!*
Now, it’s worth noting Stock Advisor’s total average return is 918% — a market-crushing outperformance compared to 208% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of July 4, 2026.
Daniel Miller has positions in Ford Motor Company and General Motors. The Motley Fool has positions in and recommends Apple and Ferrari. The Motley Fool recommends BYD Company and General Motors. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Indicator	TTM Median
P/E	36.52 18.27
Price/Sales	8.74 0.68
P/B	12.45 1.73
P/FCF	33.16 13.56

Indicator	TTM Median
ROE	42.84 14.93
ROA	16.69 5.11
ROI	23.77 8.85
Net Worth	69.49 0.84
Quick Ratio	3.70 0.86
Current Ratio	4.85 1.39

Indicator	TTM Median
Net Profit Margin	22.21 5.79
Operating Margin	29.51 8.49
Gross Margin	51.63 39.55
Return on tangible equity	117.23 21.78

Indicator	TTM Median
EPS	3.05 0.55
EPS Forecast	2.83 0.50
Revenue	2.25B 193.00M
Gross Profit	1.19B —
EBITDA	877.00M —

Ferrari N.V.

Recent quarterly and TTM performance

Valuation

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Revenue