Ferrari and the Lewis Hamilton effect: stock value surges by 7 billion

The Ferrari stock witnessed a surge of over 10%, hitting a new record on the New York Stock Exchange on Thursday after the news of Lewis Hamilton’s possible move to the Scuderia in Formula 1. Additionally, the Scuderia also posted record profits in its latest quarterly report.

As reported earlier by ScuderiaFans.com, Hamilton is reportedly on the verge of a sensational switch to Ferrari starting in 2025, unexpectedly concluding his long-standing relationship with Mercedes after over ten seasons together.

According to rumors, the official announcement of his departure from the German team to join the Maranello-based Scuderia alongside Charles Leclerc could come in the next few days, possibly on Thursday. In fact, as reported by the British media, Mercedes personnel have already been informed of the developments in a factory meeting in Brackley today, attended by Team Principal Toto Wolff and Technical Director James Allison.

If the news is confirmed, Mercedes will now have to contemplate long-term plans to replace Hamilton, as obvious targets like Lando Norris and Leclerc have recently signed long-term contracts. Neither Ferrari nor Mercedes has issued an official comment on the Hamilton situation, which has sent shockwaves through F1.

However, the broader impact of Lewis Hamilton’s decision has been evident worldwide, with Ferrari’s value skyrocketing at the opening of the New York Stock Exchange. Following a positive statement regarding revenues and basic earnings, with projected pre-EBITDA profit growth to $2.64 billion this year thanks to a healthy order book, a significant price shift was observed.

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After closing Wednesday’s trading at a share price of $346.78, the stock surged to a peak of $384.00 after Thursday’s opening, and further increases are anticipated throughout the day.

This gives Ferrari an estimated market capitalization of $69.12 billion, a substantial increase from the $62.4 billion at Wednesday’s close. The nearly $7 billion increase in the company’s value is a massive vote of confidence in the decision towards Ferrari, including the positive image implications that Hamilton’s arrival could bring.

The current Ferrari stock price is significantly higher than the 12-month low of $252, and in today’s confirmed quarterly results announcement, the Scuderia posted record profits. The prancing horse closed last year with net revenues of nearly six billion euros, a 17.2% increase compared to the 5.1 billion achieved in the previous fiscal year.

In 2023, Lewis Hamilton had signed a long-term contract with Mercedes covering the 2024 and 2025 seasons, but the second season was only an option, making the contract not entirely secure. It appears that Hamilton has triggered an exit clause that will allow him to join Ferrari in 2025 as a replacement for Carlos Sainz, whose current contract expires at the end of this year.