4. Shareholders are in doubt
There have been some fuzz and buzz about Ferrari’s stock in the market lately. Some experts even think that the company will have trouble living up to its lofty valuation.
When you put your money into a company, you expect them to keep raising their revenues thus you can gain more profit along with them. However, Ferrari is limiting their products. It is the company’s strategy to keep the brand exclusive.
This is so extreme that authorized Ferrari dealers will refuse to sell a car to you even if you come knocking on their door with a case full of money.
Every year, Ferrari sells around 7,000 cars only. The only way to boost the revenue is by raising the cars’ price. This has not affected the company’s stock yet, but it is still a concern for the shareholders.
