I’m not much of a car guy but the one car I’ve always wanted is a red Ferrari. Besides for that, I’m happy if my car gets me from A to B without incident. A new Ferrari will set you back anywhere from a quarter to a half a million dollars. Obviously it’s a car for the ultra-wealthy. But the ultra-wealthy have done extremely well over the last couple of years – the last 15 years really – and as a result so has Ferrari (RACE) stock.
In fact, the stock has almost doubled the performance of The Nasdaq-100 (QQQ) over the last two years. RACE – based in Maranello, Italy – sold 7,044 Ferrari’s in the first half of 2024 for €3.297 billion Euros. They earned €4.23/share YTD and are guiding full year to €7.90/share or greater. With the exchange rate at $1.09/Euro, the stock is not cheap at 55x current guidance. But it’s a great stock to play the rise of the ultra-wealthy. RACE reports 3Q24 earnings Tuesday morning.
