Buy This Ultra-Luxury Stock Hand Over Fist After 17% Plunge

Published: Saturday, November 15, 2025 at 8:05 am

Ferrari Stock Plunges, Presenting a Potential Buying Opportunity

Ferrari's stock has experienced a significant downturn, shedding approximately 17% of its value over the past month. This decline, however, isn't a reflection of current performance. The luxury carmaker recently reported a robust third quarter, exceeding expectations and even raising its guidance for 2025. The primary driver behind the stock's dip appears to be the company's projected growth through 2030, which fell short of some investor expectations.

Despite the market's reaction, Ferrari's third-quarter results were impressive. The company generated strong revenue with only 3,401 total shipments. Net revenue increased by 7.4% to 1.77 billion euros compared to the previous year, leading to a 7.6% gain in operating profit, reaching 503 million euros. Notably, operating margins remained a strong 28.4%, a figure considered exceptional within the automotive industry. This success was partly fueled by strong deliveries of the SF90 XX and 12Cilindri models, as well as increased personalization options, which helped offset the impact of U.S. import tariffs.

Beyond the core financial metrics, several factors are worth noting. Ferrari is actively executing a multiyear share buyback program, signaling the company's confidence in its future. Additionally, Ferrari has adjusted its electric vehicle (EV) strategy, now projecting that full EVs will constitute about 20% of its lineup by 2030, a reduction from its initial goal. Furthermore, Ferrari offers investors revenue transparency, with its order book already sold out through 2027. The company is set to introduce its first fully electric model, the Elettrica, next year.

BNN's Perspective:

While the market's reaction to Ferrari's long-term growth projections is understandable, the company's current performance and strategic moves suggest a strong underlying business. The recent stock decline could present a buying opportunity for investors who believe in Ferrari's brand strength, pricing power, and ability to navigate the evolving automotive landscape. The company's focus on its core business, coupled with its measured approach to EVs, could position it well for future success.

Keywords: Ferrari, RACE, stock, investment, luxury, automotive, earnings, revenue, profit, buyback, EV, electric vehicle, third quarter, guidance, market, shares, investors, margins, growth, Benedetto Vigna

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