The Ferrari brand cannot really be compared to other car brands. The company is worth almost 30 times their yearly profit, which is much higher than the valuation of other car companies. The average profit margin on the sale of a Ferrari is higher. The latter can of course make an investment in Ferrari attractive. But what is the best method to buy Ferrari shares? And what is the current stock price? On this page you will find all the information you need when you are considering an investment in Ferrari.
How to actively invest in Ferrari shares?
Ferrari's share can rise and fall in value by several percent. For example, the company receives a lot of attention because of the races in which the company participates. When the brand’s cars are suddenly defeated by a competitor, the price of the Ferrari share can suddenly fall. If you own Ferrari shares, you can lose money on it. As a speculator, you can respond and to & benefit from a similar event.
You do this by taking a short position. With a short position, you achieve a positive result when the share price falls. A good broker where you can trade in CFD Ferrari shares is Plus500. With the button below, you can try out the possibilities risk-free with a demo:
Where to buy Ferrari shares?
Ferrari is worth a lot of money because it is a strong brand. The company hardly has to spend money on advertising: people want to own a Ferrari because it is 'cool'. They achieve this feeling by making it an exclusive brand. This does put a limit on growth. By conquering new markets and by bringing out exclusive, more expensive models, Ferrari manages to generate higher revenues. This could be an attractive reason to buy Ferrari shares. But where can you do this against low fees?
A good broker where you can buy Ferrari shares is DEGIRO. At DEGIRO you can be 100% certain that you benefit from low transaction fees and that is great news! Use the button to open an account with DEGIRO and start investing right away:
What is Ferrari's stock price?
Is Ferrari's stock price racing forward or is the stock full on the brakes? The graph shows how the CFD share is performing. Use the buttons to immediately buy CFD shares in this beautiful company.
About the company Ferrari
Enzo Ferrari started in 1913 as a driver at Alfa Romeo. In 1929, he founded the company Ferrari as a racing team. It was not until 1947 that the company became a car manufacturer. That year, Ferrari produced their first legal streetcars. The Italian car manufacturer's headquarters are located in Maranello, Italy.
An exclusive car market
Ferrari is an exclusive car brand. To ensure this exclusivity, for years no more than 7,000 Ferraris were produced each year. Nowadays production has increased slightly, which reduces the exclusivity of the brand.
Higher production numbers do give the possibility to increase sales and achieve a higher profit. Ferrari is still an exclusive car brand. It aims to produce up to 10,000 cars per year.
Moreover, the company is selling more and more cars in new markets. In China, the number of affluent people is increasing. For this reason, the company can produce more cars and sell them in these growth regions.
Where are these exclusive cars sold? About a third of the approximately 9,000 cars made each year go to the Americas. Germany and the United Kingdom are the main markets in Europe. In 2018, 700 cars were sold in the People's Republic of China.
Items with the brand name Ferrari
This exclusive car brand does not only achieve its turnover by selling cars. All kinds of items with the brand name Ferrari are sold. Examples include clothing, bags, perfumes, watches and scale models. There are a lot of articles with the name Ferrari on it. You can buy these items in special Ferrari-stores in cities like London, Barcelona, Rome, and Dubai.
Ferrari therefore makes a lot of money because the name means something to many people. People think the car is cool and dream of owning one. By buying products from the brand they still have the feeling of owning a Ferrari. This kind of merchandising brings in a lot of extra revenue for Ferrari: More than 30% of the total turnover is achieved by selling these kinds of items.
A Ferrari rises in value
Ferrari's brilliant models often become classics with a hefty price tag. For example, a car collector of this Italian brand must pay 1.5 million British pounds for a Ferrari F50. That is a whopping 328% more than the purchase price in 1995.
FiatChrysler bids farewell to Ferrari
Ferrari is back on its feet after 47 years. In 1969 Fiat bought 50% of the shares and this share was increased to 90% in 1988. In 2016, the car group FiatChrysler (FCA) sells the shares. The farewell was painful for FCA as Ferrari was a lucrative part of the group. When Ferrari said goodbye, FiatChrysler lost a whopping 37% of its stock market value.
Ferrari went public in October 2016. At that time, 10% of the shares, which are approximately 17.2 million shares, were transferred to the New York Stock Exchange. The share price was $52 at the time of issue. On the first trading day, the share price rose to nearly $56. The yield on the IPO was $894.4 million dollar.