Ferrari Stock Surges Following Hamilton’s Signing for the 2025 Season
On Thursday, February 1, when word of Lewis Hamilton's Formula 1 transfer emerged, the share price of Ferrari jumped by more than 10% and reached a new record high on the New York Stock Exchange.
The Scuderia's share price soared by almost 10%, or under $7 billion (£5.48 billion), on Thursday, February 1, after Lewis Hamilton's shocking transfer to Ferrari. The Silver Arrows had been Hamilton's team for six of his seven world championships, and late Thursday, Mercedes revealed that the seven-time champion has used a break provision in his new two-year deal to end his contract early.As a result, Hamilton will pair up with Charles Leclerc in 2025 instead of Carlos Sainz, who is now seeking a new club for the next season. Mercedes must now carefully consider its long-term strategy for replacing Hamilton, given that potential candidates like Lando Norris and Leclerc are already committed to other teams.Hamilton's decision immediately eliminated any financial uncertainty by sending Ferrari's stock price soaring on the New York Stock Exchange.
Ferrari Price Surges
A strong order book and an optimistic outlook on sales and core profits led to a dramatic increase in the stock price. The company expects earnings before interest, taxes, depreciation, and amortization (EBITDA) to reach $2.64 billion this year.The Scuderia's market capitalization increased by about $7 billion from Wednesday's closing price to Thursday's high of $384.00 per share, bringing the total to $69.12 billion.Much like the world of sports wagering with a Caesars Sportsbook promo code, stock plays can be a gamble. Still, Hamilton's decision will undoubtedly have a significant influence, as a wager on the Ferrari stock is now paying more than ever. However, it won't have been the only one. Selling more expensive vehicles, strong sales in China and the US, and increased customized features will also play a role. Hamilton, one of the most marketable athletes on the planet, has extensive experience serving as an ambassador for Mercedes-Benz and other large sponsors; his annual compensation is estimated to be approximately £40 million.
The over $7 billion rise in firm worth is a significant affirmation of Ferrari's choice to pursue Hamilton and signifies a peak in the Italian sportscar manufacturer's valuation on the NYSE. Ferrari's stock price has risen significantly since hitting a 12-month low of $252.17.The long-term deal Hamilton signed with Mercedes last year included the 2024 and 2025 seasons, although the second season was only an option. When Carlos Sainz's contract expires this year, Hamilton reportedly activated a departure clause to let him join Ferrari in 2025.
The 39-year-old's net worth is £300 million, as reported in the Sunday Times Rich List. Seemingly eager to prolong his association with the Silver Arrows for the long haul, Hamilton inked a new deal with Mercedes last summer. However, he hopes to end his career with George Russell and Mercedes on a high note in 2024, his 12th and last season under Toto Wolff's leadership.
The Most Expensive Drive Line-Up on the Grid
Despite Ferrari's fruitless title drought that began in 2007, the team was still the most valued in Formula One before the Hamilton news. Worth $3.13 billion in 2017, the Italian club was a wonderful bargain. Mercedes was valued at $2.7 billion in second place, while Red Bull was at $2.42 billion in third. In the span of a week, Ferrari has used driver contracts to demonstrate its financial strength twice. There came the new "multi-year" deal that Charles Leclerc had to sign, and now, once he enters Maranello, Hamilton will follow suit. Regarding Formula One driver pay, Hamilton received $55 million from Mercedes, while Leclerc earned $19 million from Ferrari during the previous season. In the years to come, both of those paychecks will unavoidably skyrocket. Depending on who Red Bull decides to recruit to race with Max Verstappen, it may lead to Ferrari having the costliest driver lineup on the grid next season in terms of pay.