Ferrari shares slump 12% in biggest drop since 2016 listing
Citi analysts said though Ferrari continued to deliver solid results, the focus had shifted to whether the Milan- and New York-listed group can sustain its high profitability amid slowing growth in sales volumes and pricing.
"The focus shifts to how far the EBIT margin can go in H2, with shipments and average selling prices slowing," wrote Harald Hendrikse at Citi.
Ferrari said it will reduce the price compensation it introduced in April on some cars sold in the US once tariffs on EU-made products effectively move to 15% from 27.5%.
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Next Stay Close ✕ Global equities Developed market equities had a solid start to the second half of the year with the MSCI World Index up 1.3% m/m, nudging global equity market returns into the double-digits YTD (+11.2%). Mega-cap tech stocks were leading from the front again with the Bloomberg Magnificent 7 Index up 5.8% m/m, with chipmaker, Nvidia up 12.6% m/m the star performer amongst that cohort, aided by US President Donald Trump's announcement that he would lift a ban on supplying AI chips to China and its Magnificent Seven peers saying that they would be accelerating their AI capex spend. Alphabet, Meta and Microsoft (8.7%, 4.8% and 7.3% m/m, respectively) all saw their share prices rally after delivering positive earnings surprises. Tesla was the cohort's worst performer falling 8% m/m as the company reported one of the worst quarterly results in over a decade, which saw its earnings per share fall -53% y/y on the back of the removal of US subsidies for electric vehicles (EVs), which impacted earnings. CEO Elon Musk told investors that they should anticipate 'a rough few quarters' until the autonomous driving profits scale, likely towards the end of next year. Chinese stocks (Shanghai Composite +4.5% m/m) led emerging markets (EMs) higher (MSCI EM +2% m/m), with EM stocks still comfortably ahead of their developed market equities peers YTD (+17.9% vs +11.6% YTD). Peter Little is a fund manager at Anchor Capital. Image: Supplied Peter Little, Fund manager at Anchor Capital. *** The views expressed here do not necessarily represent those of Independent Media or IOL. BUSINESS REPORT
