This is a quick follow up video to Wooley’s rant about Ford the other day (https://s3mag.com/your-solution-is-no-solution/)
As we all know by now (thanks to COVID stimulus checks, Robinhood, GameStop, and AMC) there are some shenanigans going on in the stock market. I used to be naive and thought that things like sales & revenue generation was what actually controlled the price of a stock. It turns out that is not true at all. It all comes down to supply, demand, investment, and the news cycle. If the news is in your side, then the rest becomes cake. Ford is currently dealing with some pretty major problems:
1. Q1 sales are down 17%!
2. Lots of recalls already this year
3. Chip shortages are still shutting down production and leaving dealerships empty.
All of that being said, the stock is still doing better than it has in an extremely long time. So the big question is; Why? The answer is simple and a bit frustrating. Ford’s push of EV’s in the news is artificially inflating the stock. Give it a quick listen.