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.

Key Points
The ultra-luxury automaker runs on scarcity, not scale.
Electrification is a challenge -- but also an opportunity.
Add it all up, and Ferrari deserves its premium valuation.
Ferrari (NYSE: RACE) has long symbolized speed, style, and exclusivity. But lately, investors are noticing something more measurable: its financial engine.
While most automakers operate on thin margins and cyclical demand, Ferrari has quietly built one of the most profitable business models in the world. It isn't just a car company anymore -- it's a luxury compounder.
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Does all this spell opportunity for investors now?
What does Ferrari do?
Ferrari designs, engineers, manufactures, and sells ultra-premium sports cars, but the story doesn't end there.
The brand offers personalized features, bespoke options, after-sales services, restoration, licensing, and lifestyle goods. Its manufacturing is limited (in 2024, Ferrari shipped just 13,752 vehicles), yet it achieved 6,677 million euros in revenue -- up 11.8% from the prior year. To put it into perspective, each car averages just under half a million euros in revenue.
That scarcity is intentional. Ferrari famously produces "one car less than the market demands." By deliberately constraining supply, it keeps demand -- and pricing power -- permanently high. This is the luxury model perfected by Hermès and LVMH Moët Hennessy - Louis Vuitton, applied to performance cars.
The result? Ferrari's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margins hover around 38%, rivaling luxury fashion houses and leaving its automaker peers far behind. To put it into perspective, Tesla, the leading luxury electric carmaker, delivered an adjusted EBITDA margin of 17% in 2024. Note that this is not an exact apples-to-apples comparison because the latter is involved in many other industries, such as renewable energy. Still, the difference in margins tells the story.
Moreover, Ferrari also generates just under 15% of its revenue from other businesses such as sponsorship, commercial, brand licensing, and other financial services. Still, the majority of its revenue comes from car-related operations: vehicle sales, personalization, and after-sales support.
What's next for Ferrari?
Ferrari's most significant challenge -- and opportunity -- lies in the future of mobility. With regulators pushing for electrification, Ferrari is walking a tightrope: It must modernize without losing the emotional soul of its cars.
The company's transition is already underway. Half of Ferrari's shipments are now hybrid, and its first fully electric model is scheduled for 2026. By 2026, the company expects roughly 60% of sales to be hybrid or electric.
Ferrari's management knows its customers buy emotion, not efficiency. That's why it's building its new EV factory in Maranello, focusing on sound engineering and driving feel to preserve what makes a Ferrari a Ferrari.
Meanwhile, new models like the Purosangue SUV are broadening Ferrari's addressable market without diluting exclusivity. The SUV demonstrates how Ferrari is carefully expanding its volume to satisfy market demand without sacrificing the brand's identity. With the ever-growing ultra-rich population globally, there's more room for luxury companies to expand in this area.
In short, Ferrari's future looks bright -- so long as it navigates electrification without losing its essence.
What does the market think about the stock?
Ferrari stock offers a rare blend: luxury-brand economics, automotive performance, and global growth. Yet, the valuation debates persist.
At current levels, Ferrari commands a premium multiple relative to traditional automakers. For perspective, the stock trades at a price-to-earnings (P/E) ratio of 41, vastly higher than General Motors' P/E ratio of 6. But that's because it should not be valued like one. Given its margin profile and brand premium, Ferrari looks like a luxury house with wheels.
The question for investors isn't whether Ferrari is cheap -- it rarely will be -- but whether the brand can continue delivering compoundable earnings growth over the next decade. With controlled supply, potent product mix, and disciplined electrification, Ferrari has the potential to justify its premium.
What does it mean for investors?
Ferrari wins by doing less, not more. It sells emotion, not metal. Its scarcity, personalization, and brand power form a moat few automakers can touch. For investors with a long time horizon, Ferrari is not just a stock -- it's a compounder built to grow revenue, margins, and cash flow for decades.
That is why everyone is talking about Ferrari stock -- and why it will remain in the spotlight for years to come. Above all, it deserves a spot on your radar.
Should you invest $1,000 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 $590,357!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,141,748!*
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Lawrence Nga has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool recommends Ferrari 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.

Why Everyone's Talking About Ferrari Stock

Key Points
Ferrari proves that scarcity can be a growth strategy.
Its business runs on emotion, not efficiency.
Ferrari is a luxury compounder in disguise.
For most automakers, growth means selling more cars. For Ferrari (NYSE: RACE), it means selling fewer cars -- but at higher margins, with a deeper emotional connection, and to customers who never ask for a discount.
With these strategies, it has quietly become one of the most profitable luxury businesses in the world. Investors who still see it as an automaker are missing the bigger story: Ferrari is a luxury house with wheels.
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Ferrari's luxury business model
Ferrari designs and builds ultra-premium sports cars, but its economics have more in common with Hermès than with Toyota. Every aspect of the business is engineered for scarcity, exclusivity, and customization.
In 2024, Ferrari delivered 13,752 cars -- a tiny fraction of the output of mainstream manufacturers -- yet generated 6.677 billion euros in revenue. That year, the growth in sales volume was just 89 cars, but revenue improved by €707 million, a feat that almost no car companies can achieve.
Those figures place Ferrari in a different league. Its margins rival luxury fashion houses and far exceed peers in the auto sector, where high costs and price competition typically cap profits in the single digits. According to Macrotrends, Ferrari's gross margin reached about 50% in 2024, roughly five times that of General Motors.
Scarcity -- the engine behind Ferrari's economics
Ferrari's defining choice is to stay small. The company's founder, Enzo Ferrari, famously insisted on producing "one car less than the market demands." Management still follows that mantra today. By capping production, Ferrari preserves rarity, drives waiting lists, and strengthens resale values -- a feedback loop that reinforces the brand's mystique.
What's special about Ferrari's brand isn't recognition -- it's permission. Ferrari can raise prices, restrict access, and still expand demand. This unique effect is the essence of luxury economics: When price increases, desire often rises too.
That brand gravity also lowers risk. Waiting lists extend years into the future, creating pre-sold demand that cushions Ferrari against economic downturns. Even in recessions, ultra-high-net-worth customers tend to remain loyal.
In that sense, Ferrari behaves less like a carmaker and more like a perpetual franchise. Its intellectual property, craftsmanship, and heritage act as intangible assets that compound with time.
A portfolio within a brand
Ferrari is quietly becoming a portfolio of experiences -- not just a manufacturer of vehicles. Its revenue mix tells the story:
Cars and personalization -- the core product, where craftsmanship meets exclusivity.
After-sales and restoration -- a recurring revenue stream that keeps older models in circulation and collectors engaged.
Brand and sponsorship -- about 15 % of revenue comes from activities such as Scuderia Ferrari's Formula 1 partnerships, lifestyle licensing, and financial services.
The "brand" segment may look small, but it carries exceptional margins and strategic value. Through partnerships, lifestyle licensing, and its Formula 1 team, Ferrari monetizes visibility without eroding exclusivity.
In other words, Ferrari is scaling attention, not production. Every race weekend, millions watch the brand compete, reinforcing the mythology that sells its road cars. This loop between sport and commerce -- between heritage and aspiration -- is difficult for rivals to replicate.
The discipline that sets it apart
Ferrari's success comes not from technological disruption but from restraint. While other automakers chase scale or electric-vehicle volume, Ferrari moves deliberately. Its first fully electric car will arrive in 2026, and management has said that by the end of 2026, about 60% of sales will be hybrid or electric -- without compromising sound, emotion, or driving experience.
That slow-and-steady transition protects what matters most: brand identity. Ferrari knows customers don't buy efficiency; they purchase feeling. This disciplined growth philosophy also shows up in financial management. Free cash hit €1.0 billion in 2024, even after heavy investment in product development and the new Maranello EV facility.
What does it mean for investors?
Ferrari's business has all the traits of a luxury compounder: high margins, pricing power, strong cash flow, and brand equity that deepens over time. It trades around 41 times earnings, a premium to typical automakers -- but that multiple reflects the economics of scarcity, not scale.
If it continues to maintain discipline -- limiting supply, enriching its mix, and preserving its emotional DNA -- Ferrari can continue compounding value for decades.
It's a company that every long-term investor should take a closer look at.
Should you invest $1,000 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 $590,357!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,141,748!*
Now, it’s worth noting Stock Advisor’s total average return is 1,033% — a market-crushing outperformance compared to 193% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of October 20, 2025
Lawrence Nga has no position in any of the stocks mentioned. The Motley Fool recommends Ferrari 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.

Ferrari Isn't Just a Car Company -- It's a Luxury Brand That Prints Cash

Key Points
Ferrari keeps its vehicles exclusive by producing just 1,000 of each model annually.
Its operating margin is around 30%, flying high above the rest of the industry.
Ferrari looks like a good long-term investment, but it may not set you up for life.
Ferrari (NYSE: RACE) garnered a lot of attention lately when the luxury automaker held its Capital Markets Day, where management issued 2030 guidance that was slightly lower than expected. Many investors sold off the stock as a result. Ferrari investors have enjoyed years of strong earnings and returns -- the stock is up 578% over the past decade -- which may have set expectations too high.
In the wake of Ferrari having its worst-ever trading day, some investors are likely left wondering if it is a buy right now. And, if so, could it set them up for life? Here's what potential investors should know.
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Ferrari's exclusivity puts it in high demand
One of the most striking aspects of Ferrari's business model is that the company has successfully increased production over the past several years, while maintaining exclusivity. For example, the automaker's total production has increased 88% over the past 10 years with the introduction of new models, and yet the company produces about 1,000 vehicles per model annually, according to Morningstar data.
That means every model has very limited availability, and not all potential customers who want one can get one. That's key to keeping demand high and allowing for premium pricing.
And Ferrari's ability to develop different powertrains that appeal to customers has proved effective. The company successfully sells hybrid versions of some of its vehicles -- accounting for 51% of vehicle sales in 2024 -- and deliveries of its first electric vehicle (EV) will begin next year.
Management made a slight course correction recently, adjusting its estimated EV output down to just 20% of its model lineup in 2030, from its previous estimate of 40%. But that change comes as the company is just starting on its EV journey, so it shouldn't be too disruptive over the long term.
Many automakers are struggling to find the right mix of products and prices, but Ferrari appears to be navigating these challenges well. So far, it's offering the right mix of gasoline-powered supercars; hybrids; and soon, battery-powered sports car for luxury buyers.
The company's operating margin is through the roof
Customer demand is important, but one of the most appealing aspects of the business is that its operating margin is very high. While other automakers have thin margins, Ferrari's are sky-high at around 29%.
Here's a quick look at how the automaker compares to others in the industry:
What's more, management estimates that it will maintain these high margins, saying that its 2030 operating margin will be "at least 30%" thanks to the company's product mix, limited-edition models, and vehicle personalizations.
These high margins have helped contribute to impressive earnings for the company. Ferrari's earnings per share in the first half of this year were 4.68 euros ($5.42), an increase of more than 10% from the same time last year. And with management anticipating more of the same over the next five years, investors likely have much to look forward to.
Will Ferrari set you up for life?
Even with Ferrari's recent share price drop, the luxury automaker's stock has more than doubled over the past five years, compared to the S&P 500's gains of 86%. With the company successfully driving demand for its vehicles while maintaining high operating margins, it's likely that the stock will be able to outpace the market over the long term.
With that said, I don't think Ferrari is a stock to set you up for life. Its returns have been impressive, and it deserves a place in many portfolios, but before its recent price plunge, the shares were up about 160% over five years. While very impressive, it doesn't match the astronomical returns from some other stocks -- say, in the artificial intelligence industry. And if some investors continue their current skepticism about Ferrari, it could return more-modest gains over the next few years.
Should you invest $1,000 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 $638,300!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,114,470!*
Now, it’s worth noting Stock Advisor’s total average return is 1,044% — a market-crushing outperformance compared to 188% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of October 13, 2025
Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool recommends Ferrari, Porsche Automobil Se, and Volkswagen Ag. 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.

Could Buying Ferrari Stock Today Set You Up for Life?

Meme Stocks and Luxury Cars

Key Points
Ferrari engineers and manufactures some of the world's most sought-after ultra-luxury vehicles.
Ferrari's operating margins dwarf the traditional auto industry.
AMD's deal with OpenAI set the stage for it becoming a prominent player in AI.
Everyone loves to have found a hidden gem, or the next big high-flying stock, and share the victory story next to the office coffee pot. Unfortunately, this is far easier said than done, and finding the next high-growth stock, especially one that you can hold stress-free for the long term, is a challenge. Here are two incredible stocks that are positioned to thrive long into the future.
Racing by competitors
When looking for high-flying winners, investors would probably scratch the automotive industry off their list, but that would be a huge mistake. Ferrari (NYSE: RACE) has been a strong performer, with shares up more than double the rise of the S&P 500 over the past decade. You're probably aware that Ferrari designs, engineers, and manufactures some of the world's most expensive ultra-luxury vehicles. Supply is carefully calculated to check in below demand, supporting its significant brand and pricing power through exclusivity.
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There are a few intriguing things about Ferrari that make it an excellent investment long-term. Roughly 70% of its vehicles are sold to existing Ferrari clients, forming something to the effect of recurring revenue. The company is also diversified, with the Europe, Middle East, and Africa region accounting for about 47% of revenue, while the Americas generate 33%. The rest comes from Asia, with a limited exposure to China.
Ferrari's growth comes in an equally intriguing way, as the company has focused on horizontal growth. Rather than producing more volume or participating in more affordable segments, and reducing its pricing power, it has widened its portfolio of vehicles but still only sells a limited number, often around 1,000 units, per model annually. However, its total volume has grown 88% over the past decade, according to Morningstar.
This has created a need for Ferrari collectors, and traditional buyers, to purchase a Ferrari for different driving occasions. It offers the widest product portfolio among luxury supercar manufacturers. It also boasts margins the rest of the industry dreams of, as you can see below.
Not only is Ferrari in a completely different ballpark than its more mainstream competitors in terms of operating margins, it's also increasing that metric while the competition is stagnant or declining.
Lastly, investors might have noticed that Ferrari's stock took a dive late last week -- in fact, its single largest one-day drop since its IPO -- but fear not. The driving force came during the company's capital markets day when Ferrari raised 2025 guidance, but gave top-line 2030 guidance that checked in slightly below analysts estimates. It seems like a knee-jerk overreaction, and it doesn't help that the stock was trading at a steep premium and even after the drop still trades at a lofty 38 times earnings. Ferrari as a business remains fundamentally sound with long-term competitive advantages, don't worry about last week's decline, if anything it offers a small buying opportunity.
A way to play artificial intelligence
Advanced Micro Devices Inc. (NASDAQ: AMD) designs a multitude of digital semiconductors for markets spanning personal computers, gaming consoles, data centers, artificial intelligence, and automotive applications. Historically, the company's strength was driven by central processing units and graphics processing units used in PCs and data centers. But now AMD is evolving and becoming a prominent player in artificial intelligence (AI).
In fact, AMD and OpenAI recently reached an agreement where AMD will supply AI gear for up to 6 gigawatts of OpenAI's AI infrastructure. The deal is expected to earn tens of billions of dollars in annual incremental revenue with its rollout in the second half of 2026 -- in other words, strong growth.
Not only is this a huge deal in terms of generating incremental growth on the top line, it validates and gives credibility to AMD's emerging AI technology. In fact, this deal has fundamentally changed how analysts view the company, with Morningstar raising its fair value estimate for AMD to $210 per share, up from the prior $155 estimate. It also doubled its estimates for AMD's AI GPU revenue for 2027 and beyond and now projects about $42.2 billion for AMD revenue by 2029, compared to the prior estimate of $20.7 billion.
Buy and hold
Both of these stocks are incredibly intriguing over the long term. On one hand, Ferrari has built an incredible business that focuses on exclusivity and pricing power that drive substantially higher margins than the traditional automotive business. With its innovation history and (literal) track record, expect people to line up for its vehicles for the long haul.
AMD is almost the opposite. It's focusing on rapidly expanding its AI prowess, and has impressively become a prominent player in AI. While the company won't likely overtake Nvidia's position anytime soon, its recent deal with OpenAI signals that it's here to stay.
Both stocks appear to be excellent buy-and-hold candidates for investors seeking strong returns over the coming decades.
Should you invest $1,000 in Advanced Micro Devices right now?
Before you buy stock in Advanced Micro Devices, 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 Advanced Micro Devices 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 $657,979!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,122,746!*
Now, it’s worth noting Stock Advisor’s total average return is 1,060% — a market-crushing outperformance compared to 187% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of October 7, 2025
Daniel Miller has positions in Ford Motor Company and General Motors. The Motley Fool has positions in and recommends Advanced Micro Devices, Nvidia, and Tesla. The Motley Fool recommends Ferrari, General Motors, and Volkswagen Ag. 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 Must-Have Stocks to Buy and Hold Forever

Key Points
Ferrari unveiled part of its upcoming full-electric supercar due in late 2026.
Ferrari will spend 4.7 billion euros on electrification through 2030.
Ferrari also raised 2025 guidance, while long-term guidance was weaker than expected.
Welcome to the show! Ferrari (NYSE: RACE) gave investors a sneak peek at its upcoming first full-electric model last week, with an unveiling laser light show that might rival Las Vegas' Sphere. Despite the light show and base-thumping heavy music, the unveiling failed to electrify investors as the stock promptly plunged nearly 16% on Thursday -- its largest one-day drop since its IPO in 2015.
But not everything is as it seems. Let's cover the details and ramifications of its upcoming full-electric EV supercar, as well as what really sent the stock tumbling.
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Rock and a hard place
Ferrari finds itself in an interesting and challenging position, currently. On one hand, Ferrari due to its intangible assets, brand moat, pricing power, and loyal consumer base, could likely churn out a full-electric supercar that maintains its impressive ultra-luxury-like margins -- unlike traditional automakers that are losing money on electric vehicles (EVs) hand over fist.
On the other hand, Ferrari's competitors are pushing back their own full-electric supercars due to lack of demand. While Ferrari is preparing to unleash its Elettrica onto a road filled with uncertainty, its competitors are pulling back. Ferrari rival Lamborghini said it would delay the launch of its first full-electric model to 2029, instead of 2028, while Porsche cut back its plans for battery-electric vehicles (BEVs) due to soft sales of its full-electric Macan and Taycan. Stellantis subsidiary Maserati canceled plans for its BEV version of its MC20 sports car.
Ferrari zigging while its competitors zag is a significant bet on the near-term future of not only EVs, but the direction of its supercar lineup. Ferrari plans to invest a significant 4.7 billion euros between 2026 and 2030 for electrification and the supercar maker expects BEVs to account for one-fifth of its sales by the end of this decade. Unbeknownst to many investors is that Ferrari is already somewhat electrified as roughly half of its vehicle shipments are hybrids.
"Luxury EVs are still a young and immature category," says Brian Lum, an investment manager at Baillie Gifford, according to Barron's. "It's important to build that next generation of Ferraristi, and electrification should help them to do that."
It's also worth noting that while Ferrari's brand has seemingly had impenetrable armor over the past decades, part of that is driven by the company continually innovating and producing state-of-the-art combustion engine supercars. If Ferrari's first full EV doesn't live up to performance heritage, or its niche consumers don't buy into the idea of EVs, and it flops commercially, it could be the first chink in that brand armor perhaps ever.
What's the problem?
The driving force behind Ferrari's rare share price plunge wasn't vehicle centric. In fact, so far the Elettrica is very Ferrari-like, and we'll get more details and design clues over time. With 1,000 horsepower, it offers power output that rivals its combustion engine supercars, and the same goes for its top speed of more than 192 miles per hour. After a single charge, its range checks the necessary box of over 300 miles by an extra 29 miles, helping reduce consumer range anxiety.
The problem was that Ferrari also unveiled its financial projections for the rest of this decade, and they checked in lower than analysts expected. While Ferrari slightly raised its out look for 2025, now expecting a profit of 8.80 euros per share on revenue of 7.1 billion euros, its long-term guidance of 2030 adjusted earnings of 11.50 euros per share on revenue of 9 billion euros fell short of the 9.9 billion euros in revenue analysts expected, per FactSet.
While Ferrari's full-EV (partial) unveiling was entirely overshadowed by slight long-term weakness, investors would be very wise to follow how the Elettrica's launch goes in late 2026 -- because a lot of the future hinges on its EV lineup striking a similar chord with its core enthusiasts as its combustion engine supercars have.
Ferrari remains an absolute top stock pick by nearly any measure, with margins the automotive industry dreams of, competitive advantages that aren't easily replicable, and a brand image that stands in an arena by itself. Its near 16% drop was just a brief and small buying opportunity, and investors should be optimistic about its future despite analysts being slightly disappointed.
Should you invest $1,000 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 $657,979!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,122,746!*
Now, it’s worth noting Stock Advisor’s total average return is 1,060% — a market-crushing outperformance compared to 187% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of October 7, 2025
Daniel Miller has no position in any of the stocks mentioned. The Motley Fool recommends Ferrari and 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.

What Sent This High-Flying Ultra-Luxury Giant's Stock 16% Lower Thursday?

Key Points
Ferrari just updated guidance and presented its 2030 strategic plan.
Wall Street analysts were disappointed by the company's Capital Markets Day update.
Ferrari is scaling back its electric-vehicle ambitions.
Ferrari (NYSE: RACE) stock is racing toward its worst trading day since the luxury automaker listed shares on the Milan stock exchange nearly 10 years ago. The company updated investors at its Capital Markets Day event in Italy, but it wasn't very well received by analysts.
As of 12:15 p.m. ET, Ferrari shares were trading off the lows of the day, but still down 14.4%.
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Ferrari unveils its first electric car
Management increased guidance for this year and now expects revenue of about 7.1 billion euros, slightly higher than prior guidance. Longer-term guidance disappointed analysts, however. Ferrari estimates 2030 sales of just 9 billion euros, when analysts were penciling in 9.8 billion, according to Factset Research.
Separately, the company said it expects to launch an average of four new models annually through 2030 and scaled back its electrification plans. It unveiled the Ferrari elettrica, its first electric-vehicle (EV) offering.
EV deliveries will start late next year, but Ferrari now says it only expects 20% of its lineup to be electric by 2030. (It previously estimated 40% of its model lineup would be EVs by 2030.) Now, Ferrari sees a mix of 20% electric, 40% internal combustion engine (ICE), and 40% hybrid.
The 2030 projections caused today's sell-off, which wiped out all of Ferrari's 2025 stock gains.
Should you invest $1,000 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 $654,835!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,159,218!*
Now, it’s worth noting Stock Advisor’s total average return is 1,081% — a market-crushing outperformance compared to 192% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of October 7, 2025
Howard Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends FactSet Research Systems. The Motley Fool 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.

Why Ferrari Stock Crashed Today

In trading on Thursday, shares of Ferrari NV (Symbol: RACE) crossed below their 200 day moving average of $464.19, changing hands as low as $414.85 per share. Ferrari NV shares are currently trading down about 13.2% on the day. The chart below shows the one year performance of RACE shares, versus its 200 day moving average:
Looking at the chart above, RACE's low point in its 52 week range is $391.54 per share, with $519.0999 as the 52 week high point — that compares with a last trade of $413.63.
Click here to find out which 9 other stocks recently crossed below their 200 day moving average »
Also see:
Top Ten Hedge Funds Holding SAVA
ETFs Holding LXU
Funds Holding ECCW
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

RACE Makes Notable Cross Below Critical Moving Average

The Motley Fool Interviews Tom Slater, Head of U.S. Equities at Baillie Gifford

Advance Auto Parts, Inc. AAP reported adjusted earnings of 69 cents per share for the second quarter of 2025, beating the Zacks Consensus Estimate of 59 cents. The company reported adjusted earnings of 75 cents per share in the year-ago quarter.
Advance Auto generated net revenues of $2.01 billion, which beat the Zacks Consensus Estimate of $1.98 billion. Comparable store sales increased 0.1% year over year. We expected a rise of 0.2% for the same. The top line decreased from $2.68 billion generated in the year-ago quarter.
Advance Auto Parts, Inc. Price, Consensus and EPS Surprise
Gross profit decreased 10% to $874 million (43.4% of net sales). AAP reported operating income of $22 million. SG&A expenses totaled $852 million for second-quarter 2025, down 4.9% year over year.
The company had cash and cash equivalents of $1.66 billion as of July 12, 2025, compared with $1.87 billion as of Dec. 28, 2024. Total long-term debt was $1.49 billion as of July 12, 2025.
Through the second quarter of 2025, net cash used by operating activities and negative free cash flow totaled $106 million and $201 million, respectively.
As of July 12, 2025, the company operated 4,292 stores in the United States, Canada, Puerto Rico and the U.S. Virgin Islands. It also served 842 independently-owned Carquest-branded stores across these locations, in addition to Mexico and various Caribbean islands.
On Aug. 5, AAP declared a dividend of 25 cents per share to be paid on Oct. 24 to its shareholders as of Oct. 10, 2025.
AAP Reiterates 2025 Guidance
Advance Auto expects 2025 net sales from continuing operations in the range of $8.4-$8.6 billion. It aims to open 30 new stores in 2025. Comparable store sales are predicted in the range of 0.5-1.5%. Adjusted operating income margin from continuing operations is envisioned in the range of 2-3%. AAP expects 2025 capex to be approximately $300 million.
Advance Auto’s Zacks Rank & Key Picks
AAP carries a Zacks Rank #3 (Hold) at present.
Some better-ranked stocks in the auto space are PHINIA Inc. PHIN, Gentex Corporation GNTX and Ferrari N.V. RACE. While PHIN and GNTX sport a Zacks Rank #1 (Strong Buy) each, RACE carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for PHIN’s 2025 sales and earnings implies year-over-year flat growth and an 18.13% rise, respectively. EPS estimates for 2025 and 2026 have improved 6 cents and 12 cents, respectively, in the past seven days.
The Zacks Consensus Estimate for GNTX’s 2025 sales and earnings indicates year-over-year growth of 9.24% and 0.57%, respectively. EPS estimates for 2025 and 2026 have improved 9 cents in the past 30 days and 2 cents in the past seven days, respectively.
The Zacks Consensus Estimate for RACE’s fiscal 2025 earnings and sales indicates year-over-year growth of 13.65% and 13.76%, respectively. EPS estimates for fiscal 2025 and 2026 have improved 14 cents and 18 cents, respectively, in the past 30 days.
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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	54.45 18.21
Price/Sales	11.94 0.65
P/B	24.42 1.75
P/FCF	55.60 14.46

Indicator	TTM Median
ROE	45.02 15.91
ROA	16.54 5.60
ROI	23.68 9.40
Net Worth	81.41 0.91
Quick Ratio	3.32 0.91
Current Ratio	4.35 1.45

Indicator	TTM Median
Net Profit Margin	21.79 6.40
Operating Margin	27.47 8.93
Gross Margin	49.76 38.46
Return on tangible equity	160.86 23.70

Indicator	TTM Median
EPS	2.29 0.43
EPS Forecast	2.11 0.39
Revenue	1.84B 184.50M
Gross Profit	921.00M —
EBITDA	709.00M —

Ferrari N.V.

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