How Hamilton's Rumored Move To Ferrari Earned Them $4 Billion In A Few Minutes

F1
by Erik VirostkoThursday, 01 February 2024 at 15:00
Updated at Thursday, 01 February 2024 at 18:52
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Lewis Hamilton is rumored to have signed a contract with Scuderia Ferrari, and his possible move earned the team money even though the deal was not announced.
The past few hours have been really crazy, since a rumor started circulating about Hamilton possibly signing with Ferrari. Since then, the situation has escalated, and some are already claiming it's a done deal.
Either party is yet to make an announcement, as the seven-time World Champion's move from Mercedes to other team seems to be a bit surreal, but even before signing with Ferrari, the team has already made money.
Often, driver's move can generate a lot of revenue for an F1 team, even despite possibly paying a higher salary, as they earn money on new merchandise, and in case of arguably the most successful driver of all time, high earnings are expected.
However, the team from Maranello earned also in a different way. As with any other publicly traded company, Ferrari has its own stock - Ferrari NV, and since the possible move came into discussion, it has made a massive jump.
Before The rumor started spreading, Ferrari's stock was valued at around $345, and only in a few minutes, the stock's price jumped to $370, which marks more than a 7% raise in value.
As the company has a market cap of over $66 billion, this rise in value has represented more than $4 billions, a massive move, which the team certainly won't mind, on top of having a seven-time World Champion in their red car.
The deal is yet to be officially announced, and even though various reports suggest that it's a done deal already, it may still turn out differently, and then, it will be interesting to observe the impact on Ferrari's stock price again. But this time, it probably wouldn't be in green numbers.