Ford is Getting Destroyed Today

Ford just warned of a massive one billion dollar Q3 profit hit sending its share price down 12%; Ouch!

Yahoo Finance - September 20, 2022

Well, I've owned their stock for 20 years.  I reckon one of these days I'll be in the black, but it won't be today.  LOL.

i'm buying at $10 if it drops that far.

I wonder how many more large companies are in this boat, but use using creative accounting to put the pain off as long as possible.  Going to be an interesting end to the year.

In reply to RX Reven' :

I wonder what is the cause? Lack of sales? Too high costs?  Poor investments?  Paying off fines?   All of the above?   
    So what does Ford still own?   Mazda stock?  A bunch of corporate perks? 

Flynlow (FS) said:

I wonder how many more large companies are in this boat, but use using creative accounting to put the pain off as long as possible.  Going to be an interesting end to the year.

Will they wait that long?   Isn't the triple witching hour about the 3rd week in October?   

Is it time to do the Game Stop thing on Ford?

RX Reven' said:

Ford just warned of a massive one billion dollar Q3 profit hit sending its share price down 12%; Ouch!

Stock's on sale! 

I made a buttload on them a little while back.  Bought in at $14ish, sold at something over $25.

Might be nice to do the same thing again.

Noddaz said:

Is it time to do the Game Stop thing on Ford?

Nah, GS was based on the stock being massively shorted.  Ford has decent fundamentals already.  Don't see it happening like that.

frenchyd said:

In reply to RX Reven' :

I wonder what is the cause? Lack of sales? Too high costs?  Poor investments?  Paying off fines?   All of the above?   
    So what does Ford still own?   Mazda stock?  A bunch of corporate perks? 

They claim it's due to supply chain shortages and high inflation.

In reply to RX Reven' :

If so, wouldnt the same be happening to GM and VAG?

yupididit said:

In reply to RX Reven' :

If so, wouldnt the same be happening to GM and VAG?

This news came from Ford (honestly not sure why they wanted this news out right now), but is basically just a warning from them about what to expect when they share their official Q3 earnings report in late October. GM hasn't leaked out any news about their earnings, but because Wall St now expects something similar from them, their stock is down over 5% today as well:

Stellantis is down a bit too:

We'll find out in about a month just how bad it is for all of these companies. If Ford's earnings report is as bad as they're saying they shouldn't really be penalized further. If GM, VW, Stallantis, etc also have bad earnings, they'll probably be penalized whenever that news breaks.

In reply to yupididit :

One of 'em could be open about the trouble they are facing, the others could be hiding it?

Given supply chain issues, how is any car company making money? Look at the whole Maverick thing.  You can't make money if you don't have anything to sell.

One wonders if this will generate huge shorts on the other car companies in anticipation.

Anyone have an easy view into where the shorts currently are?

Pretty amazing considering they have already sold a year's worth of Mavericks.     I ordered one on 16 Sept.  Ford published they are not taking any new orders after this week.

Probabaly because of the 4-door mustang they introduced...

Not sure what people are so upset about. Ford has lost more in a quarter before -- back when a billion meant something. 

But I also have a tough time giving a crap about the stock price- too many times it went down following record profit announcements to take it seriously. Let alone the smaller companies who have much larger stock cap value. Makes no sense. 

In reply to preach (dudeist priest) :

Except they announced it three years ago, and they couldn't afford the free publicity they've got from internet whiners complaining about the name while they sell everyone they can build and and plan to build.  While I'm not a fan of the whole line up, it's a very competitive line up right now at least in the short term.  Wall Street cares more about future potential than todays product, except when it comes to production interruptions, as they've already figured in their assessment of todays products years ago.

I think it's more down to the lack of confidence in Jim Farley as a leader, and concern about the way they are handling the planned switch to electric and how they are treating their dealer network.  Additionally Ford have an 'upper price' heavy line up.  The Maverick, which is essentially sold out for a long time to come, is their only vehicle in the $20Kish price range, and no smaller vehicles.  Base Rangers start over $25K, base stripper Mustangs (does such a thing really exist?) are closer to $28K.  While gas is continuing to fall as expected, interest rates are going up and car loans will be hitting 7-8% soon.  You think $5 gas kills sales, watch what happens when monthly payments start climbing $100-2000 in the future.  

I laugh at the phrase "lost a billion dollars." You didn't lose  $1,000,000,000. You just didn't make that billion.  You lose an actual billion dollars and you aren't a company for long.

In reply to Appleseed :

I was going to say just that.  The media these days will take anything it can and make it doom and gloom. 

To take it further it was a profit hit. How many billions did they make?  This was just that they did not make that extra billion that they expected to make.  With some quick math you can figurer out what they made. Looks like they ONLY made 7 billion as opposed to 8. I really don't feel to bad for ford. It just means the stock holders won't get quite as much and the executive bonuses will not be as much.  Oh and the little guy that put all the $$$ in to ford stock will also take a hit.  Why you diversify your investments.  

See fedexs recent release

dean1484 said:

In reply to Appleseed :

I was going to say just that.  The media these days will take anything it can and make it doom and gloom. 

This. All day, every day. Its entertainment. Thats why its best to ignore the news and go about your life. Much better that way.