Why I Bought the Dip in Ferrari Stock

After Ferrari's (NYSE: RACE) October Capital Markets Day, the stock cracked. Shares of the Italian luxury brand have fallen from levels above $500 in early October to below $400 more recently. For a stock that isn't typically very volatile, a drop like this in Ferrari stock is rare. Investors were spooked by the company's new 2030 targets, which implied slower growth than many had anticipated.The irony is that the sell-off came just as Ferrari raised its 2025 guidance again and reaffirmed some of the best margins in the auto industry, with high-30s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margins and high-20s adjusted operating margins.In my view, the gap between cautious long-term targets and still-excellent near-term performance created an opening, so I bought the dip.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool