This is the Statt Mann Baby. Time to Scatt a little bit.
Wall Street dipped its toe in motorsport mud this week and came away with a smile and belief: “that felt good.”
On the news that seven-time World Driving Champion Lewis Hamilton was switching from Mercedes to Ferrari next year, Ferrari stock gained nearly 13 percent in value.
More to the point, though, the company – Ferrari – gained more than eleven BILLION dollars in market cap last Thursday.
To be fair, it wasn’t all on the Hamilton News. Ferrari earnings last year exceeded analyst estimates and that report came out at the same time of Hamilton’s headlines.
We have to remember that Ferrari is considered a luxury brand and not just a car company. Its earnings come from luxury goods, design, engineering, production and more.
Ferrari’s presence in Formula One isn’t just to sell cars in America. Only about one in eight Ferraris are sold here. Most are sold in Europe, the Mideast and Asia, where F1 races.
But Wall Street loved the news of the Lewis Hamilton switch. Ferrari could meet any Hamilton contract demands on the company’s gain in value just last week alone. And Sir Lewis doesn’t put on the Ferrari red until NEXT year.
Nice…
Peace.