Is Ferrari a Good Investment for Your Portfolio?

1 September 2022

Ferrari legend and kingpin Nicola Materazzi sadly passed away recently at the age of 83, having lived largely under the radar despite playing a pivotal role in the development of the iconic Ferrari F40.

This was a rare piece of sad news for the similarly iconic sports car brand, which remains at the cutting edge of the automotive industry and continues to play a key role in Formula 1.

Because of this, Ferrari has enjoyed continual growth and a consistently rising share price during the last few years. But is Ferrari a viable portfolio option in the current climate, and what’s the best way of investing in this asset?

How Has Ferrari’s Stock Performed of Late?

Ferrari has emerged as a genuine blue-chip stock over the last six years, showcasing consistent growth from a starting point of €97.25 on September 1st, 2017.

As of August 26th, 2022, Ferrari’s share price had more than doubled to €199.75, showcasing a total increase of 105.40% over five years.

As expected, Ferrari also enjoyed a strong commercial start to 2022, with the brand’s total shipments of 3,251 units up by 17.3% when compared to Q1 during the previous year. Net revenues of €1,186 million also showcased an increase of 17.3% when compared with 2021, with Ferrari recording a net profit of €239 million.

Each of these impressive metrics plays into the perception of Ferrari as a significant investment asset, and one that delivers reliable and incrementally higher returns in an increasingly challenging economic landscape.

A Look Ahead – Is Ferrari a Viable Investment Option?

In addition to a strong recent performance, Ferrari also has an impressive growth strategy for the future.

For example, the brand has planned 15 new launches between 2023 and 2026, while Ferrari is also building towards achieving ambitious goals pertaining to sustainability. To this end, the first full electric Ferrari will be unveiled in 2025, with this project on course and on time according to the most recent announcements.

By 2026, the brand’s product offering will also be 40% ICE and 60% hybrid and fully electric, as Ferrari continues to reposition itself in line with modern trends and investors.

Overall, Ferrari is a viable investment option in the current climate, offering consistent growth and a clear strategy for future expansion. However, a share price of just below €200 may be a little prohibitive for some, unless you’re willing to invest in fractional Ferrari shares.

In this case, you may want to consider speculative stock investment vehicles such as spread betting.

For example, you could trade Ferrari and similar assets through the indices NASDAQ 100 and Italy 40. This could form part of a progressive wealth management plan in the current climate, as they make it possible to trade both positive and negative price movements without taking ownership of the underlying financial instrument.

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