Ferrari (RACE) seems to have figured it out. The stock is up 75% over the last three years, and the company has positive free cash flow. Net profit margin is 22%.
DB2
2 Likes
Donât tell that to the honchos at Ford, Stellantis, and VW. They think that, if they drop their lower priced models, the prospects for those models can be shoved into more expensive models, increasing the volume of the larger models, so they sell more units of higher margin products. Of course, the Welchist âhigh gradingâ only works until it doesnât.
VW saw big money where it was headed, two years ago.
1 Like