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
Ferrari is a durable luxury brand that can provide steady returns for your portfolio.
Nintendo is a longstanding gaming giant that builds its business with a decades-long time horizon.
Airbnb is a steadily growing force in global travel, and should remain so for many years.
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Here are three stocks you can buy today, sit tight, and hold forever.
1. Dominance in luxury cars
Luxury businesses are some of the highest-quality ones in the world, building up brands that stand the test of time. The pinnacle of luxury in cars is Ferrari (NYSE: RACE). A sports car brand with racing heritage and its own Formula One team, Ferrari has one of the best brands in the world.
Selling a few cars every year -- it shipped just under 14,000 units over the last 12 months -- but at high prices makes the Ferrari brand aspirational for many car fans. It can take years spent on a wait list in order to have the privilege to spend hundreds of thousands of dollars on one of its luxury vehicles. That is a great business model.
Due to disappointment around its short-term targets and a general slowdown in the luxury goods market, Ferrari's stock has fallen into one of its sharpest drawdowns ever, 29% as of this writing on Dec. 11. For investors looking to buy and sit tight, this is a good entry point to take a position in the stock. It trades at a price-to-earnings ratio (P/E) of 37, and while not dirt cheap, it is an acceptable valuation for a company that has proven it can raise prices in perpetuity without sacrificing customer demand.
Ferrari will be around decades from now, making it perfect for a forever portfolio.
2. Gaming entertainment with durability
Another consumer brand that thinks in decades is Nintendo (OTC: NTDOY). Short-term concerns over input costs for the gaming giant are currently providing investors with a nice entry point for the stock.
Nintendo just launched its Nintendo Switch 2, which is getting rave reviews and selling like hotcakes. However, with rising semiconductor prices due to the AI boom, its input costs for its gaming hardware are beginning to rise, which investors are painting as bearish for earnings in the next few quarters. While this could be true, it says nothing about the long-term durability of the Nintendo brand, which stands the test of time.
The console launched earlier this year, and Nintendo has begun selling through to its 128 million annual playing users. Just at the beginning of the console life, Nintendo should see a huge boost in earnings over the next few years, with other catalysts coming from theme park openings and its new movie initiatives.
Long term, Nintendo's characters, such as Mario and Zelda, should remain relevant as long as the company keeps nurturing entertainment IP with quality video game titles. With the stock in a 25% drawdown, now is a good time to scoop up some shares of Nintendo.
3. Steady growth in global travel
Lastly, we have a newer brand, but one that has captured the minds of younger consumers and built up quite the advantage versus any competitor. The company is Airbnb (NASDAQ: ABNB), the premier travel platform for alternative accommodations.
By building up a supply of millions of unique home listings for global travel, Airbnb is an unrivaled platform for travelers and is wildly popular among younger people. Today, it is working to expand to new countries and increase its market share, while also growing its presence into new travel categories such as tours and at-home services (such as chefs and massages).
Airbnb's revenue is growing 10% year over year in constant currency, which I expect to continue over the long term as the company keeps gaining market share in the travel sector and rides the overall tailwind of travel sector growth. This makes the stock a great "set-it-and-forget-it" investment you can buy today and never sell.
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Brett Schafer has positions in Airbnb and Nintendo. The Motley Fool has positions in and recommends Airbnb. The Motley Fool recommends Ferrari and Nintendo. 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.

The Forever Portfolio: 3 Stocks to Buy in 2026 and Hold Forever

Shell plc SHEL has signed a significant long-term deal to supply Ferrari RACE, an Italian-based automobile manufacturer, with renewable energy, extending until 2034. This partnership aims to help the iconic luxury automaker reduce its carbon footprint and meet ambitious sustainability targets. The deal, which reflects the increasing importance of renewable energy in industrial operations, is a critical step for both companies as they accelerate their commitment to a low-carbon future.
Importance of Power Purchase Agreements in the Green Transition
Power Purchase Agreements (“PPA”) have become an integral tool in the renewable energy sector, especially in Italy. These long-term contracts enable businesses to purchase electricity directly from energy producers, securing favorable pricing while also ensuring access to renewable power. As industries strive to reduce their carbon emissions, PPAs offer a reliable way to integrate clean energy into their operations.
In the case of Ferrari, this new agreement with the London-based integrated oil and gas company will provide a total of 650 gigawatt hours (GWh) of renewable energy over the next decade. This quantity of energy is substantial enough to cover nearly half of Ferrari's energy requirements at its Maranello plant, located near Modena, Italy. With this supply of green energy, Ferrari takes a critical step toward decarbonizing its production processes, aligning with the broader global push for sustainability.
Shell’s Role in Ferrari’s Carbon Reduction Strategy
The partnership between Shell and Ferrari marks a pivotal moment in the luxury carmaker's environmental strategy. Ferrari has committed to reducing its Scope 1 and Scope 2 emissions — those directly linked to its operations and energy consumption. Under this deal, the reduction in these emissions will be substantial, aiding Ferrari in achieving its goal of a 90% decrease in absolute emissions by 2030.
Scope 1 emissions refer to the direct emissions from Ferrari's operations, such as those from production facilities. Meanwhile, Scope 2 emissions stem from the electricity that Ferrari purchases to power its operations. By sourcing a large portion of this electricity from renewable sources, Ferrari is taking proactive measures to eliminate the environmental impact of its energy use.
Shell’s renewable energy solutions will not only support Ferrari’s operations at its Maranello site but also at broader facilities across Italy. In addition to the energy supply, Shell will provide renewable energy certificates to cover Ferrari's total energy needs in Italy. This ensures that the carmaker is fully aligned with the environmental goals, further setting its commitment to sustainability.
Decarbonization and the Future of Green Energy Partnerships
This collaboration between Shell and Ferrari is part of a broader trend of businesses integrating renewable energy solutions into their operations. As companies face increasing pressure to meet sustainability goals, partnerships like these are becoming more common. Manufacturers, particularly in energy-intensive industries like automotive production, are turning to PPAs as a means of stabilizing energy costs and reducing their environmental impact.
Shell’s expertise in the oil and energy sector positions it as a key player in the global transition to green energy. The company’s role as a provider of renewable energy aligns with its broader strategy to support businesses and governments in their pursuit of carbon neutrality. This collaboration with Ferrari further strengthens Shell’s position as a leader in the energy transition, and the deal sets a new benchmark for other companies in the automotive sector.
Sustainability at the Core of Ferrari's Future
For Ferrari, this agreement is a significant part of its broader sustainability journey. As a luxury automaker, Ferrari is often associated with performance, innovation and exclusivity. Now, the company is positioning itself as a leader in green manufacturing and sustainable luxury, ensuring that the future vehicles not only offer cutting-edge performance but also contribute to the global effort to reduce carbon emissions.
The Maranello plant, which serves as the heart of Ferrari’s production, will be transformed with this green energy supply. As the company works toward its carbon reduction goals, Ferrari is also focusing on reducing the environmental impact in other areas, such as the sourcing of materials, manufacturing processes and supply-chain operations.
Stronger Partnership: Shell and Scuderia Ferrari
Shell has long been a partner of Ferrari, particularly with its involvement in Formula 1 racing. The Scuderia Ferrari racing team has benefited from Shell's advanced fuels and lubricants, helping the team achieve top performance on the track. This new agreement between Shell and Ferrari signifies a deepening of their relationship, extending beyond the racing circuit into the broader corporate and environmental realms.
The collaboration demonstrates how businesses in different sectors can unite to drive progress in sustainability. By combining Shell’s renewable energy expertise with Ferrari’s cutting-edge automotive technologies, both companies are setting a new precedent for corporate partnerships aimed at reducing environmental footprints.
Looking Ahead: A Roadmap for a Sustainable Future
As Ferrari continues to innovate in the automotive space, it is also leading the way for a sustainable future. The deal with Shell is just one part of Ferrari's broader strategy to meet the global demand for cleaner, greener vehicles while reducing its environmental impact.
By prioritizing sustainability, Ferrari is aligning itself with the growing trend of eco-conscious consumers who demand both luxury and environmental responsibility. As the world moves toward a cleaner, more sustainable future, partnerships like this one between Shell and Ferrari will play a pivotal role in driving the energy transition and carbon-neutral goals.
This long-term renewable energy agreement reflects a powerful commitment to reducing emissions and achieving sustainability objectives. As industries around the world look for ways to decarbonize, Shell and Ferrari's collaboration will undoubtedly inspire others to follow suit, proving that green energy and luxury can go hand in hand.
SHEL's Zacks Rank & Key Picks
Currently, SHEL and RACE have a Zacks Rank #3 (Hold) each.
Investors interested in the energy sector might look at some better-ranked stocks like USA Compression Partners USAC and Oceaneering International OII, which sport a Zacks Rank #1 (Strong Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
USA Compression Partners is valued at $2.92 billion. The company is a leading provider of natural gas compression services in the United States. USA Compression Partners specializes in the design, operation and maintenance of compression equipment for the energy sector, focusing on helping customers optimize their natural gas infrastructure.
Oceaneering International is valued at $2.42 billion. The company is a global provider of engineered services and products to the offshore energy, aerospace and defense industries. Oceaneering International specializes in underwater robotics, remotely operated vehicles and subsea engineering solutions for offshore oil and gas exploration and production.
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Ferrari N.V. (RACE) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Shell Signs Long-Term Renewable Energy Deal With Ferrari

Ferrari N.V.’s (RACE) stock has hit a bumpy patch recently, falling about 17% over the last three months, even while major automakers like General Motors (GM) and Ford (F) saw their shares climb. The stock traded comfortably above $500 in early October before general investor anxiety pushed it down to its lowest price in a year.
3-Month Price Performance Comparison
Image Source: Zacks Investment Research
However, the core story of the company hasn't actually changed. While the cooling stock price makes headlines, the fundamental drivers behind Ferrari’s long-term growth remain surprisingly solid — and, in many ways, truly exceptional. This recent drop draws attention back to what makes Ferrari unique: unmatched visibility into future demand, industry-leading profit margins, and a business model that is entirely different from companies that build cars for the mass market.
This analysis looks deeper into Ferrari’s recent slide and explains why the stock is still considered structurally strong despite this short-term uncertainty. Unlike mass-market brands, its strategy prioritizes scarcity over volume. This focus ensures high prices, multi-year backlogs, and consistent profits, insulating it from industry struggles and making its luxury business model nearly impossible to copy.
Ferrari’s Red-Hot Product Momentum Led by Purosangue
Ferrari’s third-quarter results once again highlighted the Purosangue’s growing dominance in the lineup. Demand remains red-hot, and production remains intentionally constrained to maintain rarity. The SUV’s contribution to the 3,401-unit quarterly delivery figure underscores Ferrari’s ability to expand its portfolio without diluting its identity — a balancing act that mainstream automakers like GM and Ford often struggle with as they chase scale over scarcity.
Alongside models like the 296 GTS and the 12Cilindri family, the Purosangue helped protect margins, improve product mix, and keep order books full well into 2027. Ferrari’s multi-year backlog remains one of its strongest competitive weapons. With more than 80% of annual sales coming from existing owners — and 40% of buyers under age 40 — demand is not only sticky but generational. This ensures that the long-term sales trajectory looks remarkably resilient, even as the stock cools in the short run.
Pricing Power and Personalization Drive Ferrari’s Margin Machine
Where mass-market peers depend on unit growth, Ferrari’s model thrives on pricing strength and customization. Every single car produced now includes personalization, and optional features already contribute around a fifth of total revenue. That mix helped Ferrari achieve an impressive EBITDA margin of 37.9% in Q3 — far beyond what GM or Ford typically reports.
The company’s strategic approach is deliberate: raise prices steadily, deepen the personalization ecosystem, and tightly manage production to maintain scarcity. Even the recent U.S. price increase of about 10% for some models landed without denting demand. Ferrari once again raised its full-year guidance, reinforcing the visibility of both revenue and cash flow. Because the company carries little debt or heavy manufacturing assets, it is free to keep increasing its high profit margins by offering more personalization and launching new models — even if it sells only slightly more cars.
Financial Strength, Long-Term Visibility, and a Tight Model Pipeline
Ferrari’s financial structure remains one of the cleanest in global luxury. With little debt and robust quarterly free cash flow, the company has ample flexibility to invest, innovate and reward shareholders. Since launching its multi-year €2 billion buyback program in July 2022, Ferrari has repurchased about 5.84 million shares for roughly €1.95 billion — a clear demonstration of its commitment to shareholder value. The continued pace of repurchases also reflects management’s confidence and helps lift per-share metrics at a time when the stock’s valuation multiple has eased into the mid-30s.
Image Source: Zacks Investment Research
The company also maintains one of the industry’s deepest order books, extending into 2027 and supported by a rich pipeline of upcoming launches. Ferrari plans four new models per year between 2026 and 2030, ensuring product freshness while preserving exclusivity. This disciplined rollout strategy differentiates Ferrari from large-volume automakers like GM and Ford, whose model cycles are broader, faster, and more dependent on scale economics. Ferrari’s ability to balance innovation with controlled volumes is central to its long-run margin durability.
Valuation, Growth, and the Path Ahead
Agreed, Ferrari remains expensive compared with GM and Ford, but the premium is justified by its pricing power, deep order visibility, high margins and long-term growth runway. Earnings expectations for 2025 and 2026 call for 15.3% and 8.7% year-over-year growth — far stronger and more predictable than the consensus for GM or Ford, whose EPS trajectories remain more cyclical. Ferrari’s conservative long-term guidance has spooked some investors, but historically, the company has consistently exceeded its own targets well ahead of schedule.
Image Source: Zacks Investment Research
Ferrari’s recent share-price slump may appear concerning, but the fundamentals tell a different story. The company continues to demonstrate pricing strength, margin leadership, a multi-year backlog, and a disciplined product and capital strategy. Despite near-term concerns around slower long-term guidance, RACE carries a Rank #1 (Strong Buy) due to its superior earnings trajectory, strong estimate revisions, and structural advantages in pricing and demand visibility. You can see the complete list of today’s Zacks #1 Rank stocks here.
For investors, the recent correction offers an appealing entry point into one of the most durable and premium franchises in global luxury. RACE remains a high-quality compounder positioned for steady long-term growth — and still one of the most compelling names in the automotive landscape.
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Ferrari N.V. (RACE) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Ferrari Down 17% in 3 Months - Is This a Buy-the-Dip Moment?

Key Points
Ferrari breaks the auto valuation model.
It has earned its premium.
But there are risks to consider, too.
Ferrari (NYSE: RACE) is one of those companies investors can't easily classify. It's technically a carmaker, but its financials look more like a luxury house. And its stock price? Well, that's where the debate begins.
At around 41 times earnings, Ferrari trades at a premium higher than almost every automaker in the world. To many, that looks excessive. But dig deeper, and the premium starts to make sense. Ferrari's profitability, scarcity-driven business model, and brand resilience make it a rare breed -- one that could justify the price tag.
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So, is Ferrari stock really expensive? Or is it valued like the luxury compounder it's become?
Why the market thinks Ferrari is expensive
By traditional valuation standards, Ferrari's stock is rich. Most carmakers trade at single-digit P/E multiples -- General Motors, for example, sits around 6 times earnings. Even a luxury-leaning automaker like Mercedes-Benz hovers below 10.
Ferrari's P/E ratio of 41, EV/EBITDA multiple near 29, and price-to-sales ratio above 11 would seem absurd for a capital-intensive manufacturer. But that comparison misses the bigger picture: Ferrari's economics don't resemble the auto industry at all.
This is a company with an adjusted EBITDA margin of 38.3%, an operating margin of 28.3%, and a gross margin close to 50% in 2024. Those figures sit squarely between LVMH and Hermès -- not Ford Motor Company and Toyota.
If you value Ferrari as a luxury brand that sells emotion, heritage, and access, the multiple suddenly looks less extreme.
Why Ferrari might deserve its premium
Ferrari's customers don't buy cars for necessity. That emotional appeal insulates demand from economic slowdowns. Even during weaker macro periods, Ferrari's order book remains full.
Moreover, the brand monetizes far beyond vehicles. About 15% of revenue now comes from sponsorships, licensing, financial services, and after-sales. These recurring income streams strengthen predictability and cash-flow stability -- qualities that command premium multiples.
The brand power is clear when we look at its financials. Ferrari's return on invested capital (ROIC) stands near 24%, roughly double that of its luxury peer LVMH. Between 2015 and 2024, free cash flow grew by 139%, even while the company invested heavily in research and development and a new EV facility in Maranello.
Ferrari's model allows it to reinvest for the future and return capital to shareholders -- all without chasing scale. It could do that because it's a business built on scarcity and pricing power. It doesn't compete on volume -- it competes on restraint. By producing fewer cars than demand, it maintains multiyear waiting lists and rising resale values. That scarcity keeps pricing power intact.
But investors should also consider the bear case
Even so, Ferrari's current valuation leaves little room for error. At 42 times earnings, perfection is already priced in.
There are several potential risks that investors should keep in mind when buying the stock, which include:
Execution risk in electrification: Ferrari's first fully electric model arrives in 2026. If customers perceive it as less "Ferrari," the brand's emotional moat could weaken.
Luxury market cooling: While ultra-wealthy demand has proven resilient, global slowdowns or geopolitical shocks could dent sentiment.
Premium fatigue: If investors rotate away from luxury assets or demand higher risk premiums, Ferrari's multiple could compress even without a business slowdown.
These aren't existential risks, but they underscore how finely tuned Ferrari's premium is to flawless execution.
So, is Ferrari's stock expensive?
Yes -- by conventional metrics. But Ferrari isn't a conventional company. Its margins, cash-flow stability, and brand durability put it in a category of its own.
Investors aren't just paying for today's earnings. They're paying for a business that can continue compounding profitably for years, if not decades, while remaining almost immune to competitive price wars.
If Ferrari continues to blend scarcity with innovation -- protecting its brand while modernizing its lineup -- its valuation could remain elevated for years without being "expensive" in hindsight.
For long-term investors, Ferrari's current price isn't cheap -- but quality rarely is.
Should you invest $1,000 in Ferrari right now?
Before you buy stock in Ferrari, consider this:
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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 Stock Looks Expensive -- or Does It?

The following companies are expected to report earnings prior to market open on 11/04/2025. Visit our Earnings Calendar for a full list of expected earnings releases.
Shopify Inc. (SHOP)is reporting for the quarter ending September 30, 2025. The internet services company's consensus earnings per share forecast from the 11 analysts that follow the stock is $0.24. This value represents a 11.11% decrease compared to the same quarter last year. SHOP missed the consensus earnings per share in the 4th calendar quarter of 2024 by -2.86%. Zacks Investment Research reports that the 2025 Price to Earnings ratio for SHOP is 160.98 vs. an industry ratio of 28.70, implying that they will have a higher earnings growth than their competitors in the same industry.
Uber Technologies, Inc. (UBER)is reporting for the quarter ending September 30, 2025. The internet services company's consensus earnings per share forecast from the 15 analysts that follow the stock is $0.67. This value represents a 44.17% decrease compared to the same quarter last year. In the past year UBER has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 1.61%. Zacks Investment Research reports that the 2025 Price to Earnings ratio for UBER is 33.28 vs. an industry ratio of 28.70, implying that they will have a higher earnings growth than their competitors in the same industry.
Eaton Corporation, PLC (ETN)is reporting for the quarter ending September 30, 2025. The machinery company's consensus earnings per share forecast from the 9 analysts that follow the stock is $3.06. This value represents a 7.75% increase compared to the same quarter last year. In the past year ETN has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 1.03%. Zacks Investment Research reports that the 2025 Price to Earnings ratio for ETN is 31.59 vs. an industry ratio of 21.60, implying that they will have a higher earnings growth than their competitors in the same industry.
Pfizer, Inc. (PFE)is reporting for the quarter ending September 30, 2025. The large cap pharmaceutical company's consensus earnings per share forecast from the 5 analysts that follow the stock is $0.66. This value represents a 37.74% decrease compared to the same quarter last year. In the past year PFE has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 34.48%. Zacks Investment Research reports that the 2025 Price to Earnings ratio for PFE is 8.08 vs. an industry ratio of 14.40.
Spotify Technology S.A. (SPOT)is reporting for the quarter ending September 30, 2025. The internet software company's consensus earnings per share forecast from the 6 analysts that follow the stock is $1.87. This value represents a 17.61% increase compared to the same quarter last year. Zacks Investment Research reports that the 2025 Price to Earnings ratio for SPOT is 132.39 vs. an industry ratio of 31.10, implying that they will have a higher earnings growth than their competitors in the same industry.
Ferrari N.V. (RACE)is reporting for the quarter ending September 30, 2025. The auto (truck) company's consensus earnings per share forecast from the 1 analyst that follows the stock is $2.35. This value represents a 2.62% increase compared to the same quarter last year. In the past year RACE has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 5.06%. Zacks Investment Research reports that the 2025 Price to Earnings ratio for RACE is 39.03 vs. an industry ratio of 12.80, implying that they will have a higher earnings growth than their competitors in the same industry.
Apollo Global Management, Inc. (APO)is reporting for the quarter ending September 30, 2025. The finance/investment management company's consensus earnings per share forecast from the 8 analysts that follow the stock is $1.77. This value represents a 7.93% increase compared to the same quarter last year. Zacks Investment Research reports that the 2025 Price to Earnings ratio for APO is 17.31 vs. an industry ratio of 13.20, implying that they will have a higher earnings growth than their competitors in the same industry.
Marriott International (MAR)is reporting for the quarter ending September 30, 2025. The hotel company's consensus earnings per share forecast from the 8 analysts that follow the stock is $2.41. This value represents a 6.64% increase compared to the same quarter last year. MAR missed the consensus earnings per share in the 3rd calendar quarter of 2024 by -2.16%. Zacks Investment Research reports that the 2025 Price to Earnings ratio for MAR is 26.06 vs. an industry ratio of 19.70, implying that they will have a higher earnings growth than their competitors in the same industry.
Thomson Reuters Corp (TRI)is reporting for the quarter ending September 30, 2025. The business services company's consensus earnings per share forecast from the 3 analysts that follow the stock is $0.81. This value represents a 1.25% increase compared to the same quarter last year. In the past year TRI has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 4.82%. Zacks Investment Research reports that the 2025 Price to Earnings ratio for TRI is 39.76 vs. an industry ratio of 19.40, implying that they will have a higher earnings growth than their competitors in the same industry.
Zoetis Inc. (ZTS)is reporting for the quarter ending September 30, 2025. The drug company's consensus earnings per share forecast from the 9 analysts that follow the stock is $1.62. This value represents a 2.53% increase compared to the same quarter last year. In the past year ZTS has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 8.64%. Zacks Investment Research reports that the 2025 Price to Earnings ratio for ZTS is 22.69 vs. an industry ratio of -5.60, implying that they will have a higher earnings growth than their competitors in the same industry.
Marathon Petroleum Corporation (MPC)is reporting for the quarter ending September 30, 2025. The oil refining company's consensus earnings per share forecast from the 4 analysts that follow the stock is $3.11. This value represents a 66.31% increase compared to the same quarter last year. In the past year MPC has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 22.98%. Zacks Investment Research reports that the 2025 Price to Earnings ratio for MPC is 19.47 vs. an industry ratio of 9.70, implying that they will have a higher earnings growth than their competitors in the same industry.
MPLX LP (MPLX)is reporting for the quarter ending September 30, 2025. The oil (production/pipeline) company's consensus earnings per share forecast from the 5 analysts that follow the stock is $1.07. This value represents a 5.94% increase compared to the same quarter last year. Zacks Investment Research reports that the 2025 Price to Earnings ratio for MPLX is 11.75 vs. an industry ratio of 18.60.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Pre-Market Earnings Report for November 4, 2025 : SHOP, UBER, ETN, PFE, SPOT, RACE, APO, MAR, TRI, ZTS, MPC, MPLX

Key Points
Tesla's expenses are rising and earnings are falling at the same time that EV tax credits have expired.
Ferrari continues to enjoy an operating margin of around 29% and demand for its supercars remains sky high.
Ferrari looks like the better stock on multiple fronts.
Ferrari (NYSE: RACE) and Tesla (NASDAQ: TSLA) have been two of the most popular automotive stocks over the past decade, with each of them carving out a unique niche in the auto space.
Tesla benefited for years as an electric vehicle leader and is looking ahead to a future built on automation and robotics -- both of which could be significant opportunities. Meanwhile, Ferrari has built its brand on decades of successful racing heritage, selling expensive supercars to an exclusive clientele.
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If we judge these two companies solely on their share price gains, they've both been massively successful. Tesla's stock is up an astonishing 3,100% over the past decade, and Ferrari has gained 663% -- compared to the S&P 500's 234% increase. But which stock looks like the better automotive stock right now? Let's take a look.
What's happening with Tesla and Ferrari right now
Ferrari recently made headlines when it announced its third-quarter results, in which management lowered its five-year outlook. Management now believes adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) will have an annual growth rate of about 6%, reaching about 3.6 billion euros by 2030 -- lower than the 10% EBITDA growth the company previously guided for three years ago.
What's more, management said that 2030 sales would be about 9 billion euros in 2030, lower than Wall Street's consensus estimate of 10 billion euros. Investors panicked on the news, leading to Ferrari's worst trading day since it went public in 2015.
Tesla recently reported its third-quarter results, which were slightly better compared to the previous two quarters, but still not great. Revenue was $28.1 billion in the quarter, a 12% increase from the year-ago quarter, but that growth likely came as buyers rushed out to take advantage of EV tax credits before they expired at the end of September.
More troubling was the fact that Tesla's GAAP net income fell 37% to about $1.4 billion, and the company's operating expenses soared 50% to $3.4 billion. In short, Tesla is generating far less income and at a time when its costs are substantially rising.
Ferrari has two advantages over Tesla
Tesla CEO Elon Musk has said that the future of his company will be focused on robots and automation. These are massive opportunities. The humanoid robotics market could be worth an estimated $5 trillion by 2050 and the autonomous mobility-as-a-service market could reach an estimated $10 trillion by the early 2030s.
While these are promising markets, they're going to take a massive amount of investment to potentially pay off. That's a problem for Tesla because its operating margin was just 5.8% in Q3 -- down by nearly half from the year-ago quarter -- and net income is tumbling. Tesla is facing increased global EV competition and headwinds in the electric vehicle industry, including higher costs, tariff uncertainty, and the loss of EV tax credits.
In contrast, Ferrari's vehicles are in high demand, and the company's operating margins are the envy of the auto industry. Morningstar research shows that the company's total production has increased 88% over the past 10 years, thanks to new models -- and yet it still produces about 1,000 vehicles per model, ensuring each one stays in high demand.
That's one key advantage Ferrari has over Tesla. The other is that Ferrari's operating margins of 29% far outpace all of its competitors and make it the envy of the auto industry. Here's how it compares to other automakers:
The good news for investors is that Ferrari's management anticipates that its high margins will continue, saying that operating margin will be "at least 30%" continuing through 2030 because of the company's vehicle personalizations, product mix, and limited-edition models.
Ferrari is the better stock
If it isn't already obvious, Ferrari is the better automotive stock for investors. The company's supercars are in high demand, its operating margins are through the roof, and the company has successfully expanded its lineup over the years without diminishing its brand. In contrast, Tesla's expenses are rising and its operating margins are plunging at the same time as it's increasing spending. If you're looking for an autos stock to hold on to for years, Ferrari is the far better bet right now.
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 $603,392!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,241,236!*
Now, it’s worth noting Stock Advisor’s total average return is 1,072% — a market-crushing outperformance compared to 194% 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 November 3, 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.

Tesla vs. Ferrari: Which Is the Better Stock?

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!*
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 27, 2025
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.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
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.