F - Ford Motor Company
6.18 -0.01 (-0.16%)
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Commodity Channel Index
Performance Outlook
- Short Term2W - 6W
- Mid Term6W - 9M
- Long Term9M+
| Previous Close | 6.05 |
| Open | 6.14 |
| Bid | 6.11 x 38500 |
| Ask | 6.16 x 45900 |
| Day's Range | 6.11 - 6.20 |
| 52 Week Range | 3.96 - 10.56 |
| Volume | 63,348,426 |
| Avg. Volume | 92,224,030 |
| Market Cap | 24.618B |
| Beta (5Y Monthly) | 1.30 |
| PE Ratio (TTM) | N/A |
| EPS (TTM) | -0.78 |
| Earnings Date | Jul 28, 2020 |
| Forward Dividend & Yield | N/A (N/A) |
| Ex-Dividend Date | Jan 29, 2020 |
| 1y Target Est | 6.20 |
Fair Value
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Facebook Helps Explain Why ESG Investing Matters
(Bloomberg Opinion) -- If you’re not clear on Environmental, Social and Governance investing, you’re not alone. The Department of Labor appears to be just as confused. Luckily, Facebook Inc. may serve as an example to help clarify the burgeoning investing movement. The Labor Department issued a proposed rule recently that is being widely interpreted as a ban on ESG investing in retirement accounts. A news release said the rule “is intended to provide clear regulatory guideposts” for corporate pensions and 401(k) plans around ESG investing. What it’s actually doing, however, is sowing utter confusion. “Private employer-sponsored retirement plans are not vehicles for furthering social goals or policy objectives that are not in the financial interest of the plan,” Secretary of Labor Eugene Scalia said. But ESG has nothing to do with furthering social goals or policy objectives. By definition, ESG investing is strictly a financial endeavor, an attempt to improve the performance of portfolios by limiting their exposure to companies whose environmental, social or governance policies, or lack of them, are deemed risky. In that regard, it’s no different from striking a balance between stocks and bonds, investment-grade bonds and junk, stocks of large and small companies, or any number of decisions investors routinely make to manage risk and attempt to boost risk-adjusted returns. Consider Facebook. The social media behemoth has problems. A growing number of big corporate advertisers such as Coca-Cola Co., Starbucks Corp., Microsoft Corp. and Ford Motor Co. are pulling their ads, fearing they might appear alongside hate speech, misinformation and other divisive content routinely posted on the platform. Facebook also faces a slew of antitrust inquiries from Congress, the Justice Department and a coalition of state attorneys general, as well as increasing bipartisan calls to remove legal protections that limit the company’s liability over content posted by users. Complaints about Facebook aren’t new. There have been widespread concerns about how the company handles user data since at least 2018, when news surfaced that Cambridge Analytica had obtained personal data of up to 87 million users. But Facebook has largely ignored its critics, mainly because co-founder and Chief Executive Officer Mark Zuckerberg controls the company and doesn’t appear to share the concerns, at least not enough to do anything meaningful about them. So far, Zuckerberg has made mostly symbolic gestures, such as rolling out a new voter information hub and agreeing to meet with civil rights groups who organized the advertising boycott. Zuckerberg no doubt prefers to wield absolute power, but it’s a risky proposition for Facebook’s shareholders. There is growing evidence that companies with strong governance generally perform better and are less likely to fail than those with weak governance, which also makes them a less volatile and better-performing investment over time. The best ones have policies that hold management accountable and balance the competing demands of shareholders, creditors, workers, suppliers, customers and regulators. Suffice it to say, while Zuckerberg is on the throne, Facebook has few of those checks and balances.That’s a problem because Zuckerberg is the sole arbiter of what is and isn’t a hazard for Facebook, even if all indications are to the contrary. And clearly, not everyone at the company agrees with Zuckerberg’s sanguine outlook. Facebook employees recently staged a virtual walkout, and some senior figures publicly expressed their disapproval of Zuckerberg’s laissez-faire approach to policing content. If there were a greater diversity of opinion in Facebook’s decision-making process, perhaps it would have been more attune to the many threats it now faces. The risk posed by Facebook’s strongman governance is the “G” in ESG. Not surprisingly, Facebook receives poor marks for governance. Institutional Shareholder Services, a leading provider of ESG ratings, gives Facebook a 10 for governance, the highest risk score on its 10-point scale. And according to various governance metrics tracked by Bloomberg, such as percentage of independent directors and board size, governance has weakened at Facebook over the last decade. For investors worried about the governance risk around Facebook, reducing their exposure to the company, or even eliminating it entirely, is a reasonable financial move — one that is consistent with, in fact prescribed by, the Labor Department’s “longstanding position” that retirement plans “select investments and investment courses of action based on financial considerations relevant to the risk-adjusted economic value of a particular investment.” It’s also the essence of ESG.Scalia and the Labor Department appear to confuse ESG with what would more accurately be called socially responsible investing, or SRI, which attempts to align investors’ portfolios with their values by excluding companies and industries that conflict with those values, regardless of financial impact. It’s no less odd that the Labor Department wants to ban SRI. While I suspect SRI investors will pay a price for mixing their money and their values, there’s little evidence so far that SRI is a drag on portfolios or that it would undermine the “retirement security of American workers,” as Scalia seems to fear. So if 401(k) participants and pension beneficiaries want their money aligned with their conscience, it’s not clear why the Labor Department should stand in the way, particularly when it’s part of an administration that professes devotion to deregulation, small government and religious freedom. But at the very least, the Labor Department should clarify that it’s targeting SRI, not ESG.If the rule stands, one silver lining is that it might promote a clearer separation between ESG and SRI, which would help investors navigate the growing social investing landscape. Funds that blend the two are a particular source of confusion. The iShares ESG MSCI USA ETF, for example, both invests in stocks with strong ESG scores and excludes tobacco and weapons companies. The Labor Department’s proposed rule would presumably disqualify it from inclusion in retirement plans, and thereby discourage more funds from mixing ESG and SRI. However the rule shakes out, one thing should be clear: When ESG takes issue with companies such as Facebook, it’s about money, not values. If the Labor Department finds that confusing, imagine how ordinary investors must feel. This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Nir Kaissar is a Bloomberg Opinion columnist covering the markets. He is the founder of Unison Advisors, an asset management firm. He has worked as a lawyer at Sullivan & Cromwell and a consultant at Ernst & Young. For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
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Tesla's Overexcited Fans Should Cool Down a Little
(Bloomberg Opinion) -- Back when Tesla Inc. delivered 95,000 cars to customers during the spring quarter of 2019, the stock price was languishing at about $235 and Elon Musk’s electric car company was valued at “only” $40 billion. Fast forward a year and the shares are now priced at more than $1,200. With a market capitalization of $224 billion, Tesla has surpassed Toyota Motor Corp. as the world’s most valuable automaker.Yet in the second quarter of 2020, Tesla delivered 91,000 vehicles — about 5% fewer than the same period last year. That’s pretty underwhelming for a company whose fans view it as a fast-growing technology company in the mold of Amazon.com Inc., rather than a sluggish metal-bashing carmaker. So how is the massive recent jump in its market value justified?In fairness, it shows resilience to sell this many cars when the company’s main California plant was shut by the pandemic for much of the spring period. Doubtless, Tesla’s new Shanghai plant picked up the production slack, which suggests the expense and effort of getting that China factory up and running was worth it. The launch of Tesla’s new Model Y crossover vehicle will have helped. Ford Motor Co. and General Motors Co. both saw their U.S. deliveries decline by a third in the same quarter. Nevertheless, Tesla’s stock market acolytes pushed the shares up another 8% on Thursday, adding $16.5 billion to the market value. Such exuberance is hard to understand. Musk’s company sold 7,650 more vehicles than analysts expected during the second quarter, and the stock price jump equates to about $2 million of added shareholder value for each of those additional sales. This seems a little excessive given that a Tesla Model 3 sells for less than $40,000, and the profit margin on those cars is pretty slim. The shareholder reaction makes even less sense when you consider that Tesla investors aren’t really meant to buying the stock because of the company’s current sales, which are less than 4% of Volkswagen AG’s. Rather, the investment case is a long-term one: that it will come to occupy a dominant position in clean transport and energy in the years ahead. That explains why the shares trade at 320 times its analyst-estimated earnings this year. Viewed through this lens, Tesla’s ability to shift a few thousand extra cars in recent weeks shouldn’t matter so much for the valuation. Investors’ tendency to overreact to Tesla news made more sense when its survival was open to doubt. A year ago it was laying off workers, U.S. sales were slowing and its retail strategy was confused. Senior staff kept heading for the exit. The company was burning through cash and ran pretty low on financial fuel. It had just $2.2 billion of cash in March 2019, compared with more than $8 billion now.But subsequent evidence that Tesla can sell cars for more than it costs to produce them has transformed the mood — and with it Tesla’s stock price.Instead of “killing” off Tesla, the tepid electric offerings of established carmakers such as Audi and Mercedes have only underscored the quality of their rival’s battery and powertrain technology (the same can’t be said of Tesla’s build quality). Volkswagen’s software problems with its forthcoming ID.3 electric vehicle suggest catching Tesla won’t be straightforward, even with the Germans’ vast resources.Tesla’s stratospheric valuation appears to have become self-reinforcing. Should it require more money to fund its roughly $9 billion of capital expenditure over the next three years, it can raise it from shareholders without worrying about diluting them too much.Similarly, holders of more than $4 billion of convertible bonds that Tesla issued to fund its expansion should be happy to convert them into stock, rather than demand cash repayment, taking some of the pressure off the company and its balance sheet. Still, Tesla’s valuation remains impossible to justify by any standard metrics. Analysts’ average price target is more than 40% below the current level. Even Musk has suggested that the share price, which has almost trebled since the start of 2020, is too high — although, as with his taunting of the U.S. Securities and Exchange Commission and his comments about “fascist” lockdowns, it’s usually better to tune out what Musk says and focus on his actions instead. The skeptics might have more faith in Tesla’s new position as the leader of the automaker pack when Musk stops his provocations and his shareholders stop getting giddy over modest good news.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Bryant is a Bloomberg Opinion columnist covering industrial companies. He previously worked for the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
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Galaxy Resources Offers a Lithium Rebound Play
Lithium prices have been on a big decline since late 2017. An abundance of supply coming online across the globe has offset what is surging demand for the useful metal from the smartphone, tablet and electric vehicle (EV) end-markets. Alongside this plunge in lithium prices, lithium mining stocks - like Galaxy Resources (OTCMKTS:GALXF) stock - have crumbled.Source: Olivier Le Moal/ShutterStock.com But GALXF stock took off like a rocket ship in May and June. Shares nearly doubled in about a month.Importantly, this huge move in GALXF stock came without a big move in lithium prices. Lithium carbonate spot prices have, instead, kept falling over the past few months.InvestorPlace - Stock Market News, Stock Advice & Trading TipsWhy, then, did Galaxy Resources stock soar?Because of what could happen to the price of lithium. The stage could be set for a huge rebound, on the back of growing demand and a supply crunch. If that huge rebound in lithium prices materializes, GALXF stock could turn into a muti-bagger over the next few years.Here's a deeper look. Falling Lithium PricesLithium prices appear to be on the cusp of a significant rebound as demand trends accelerate and the supply glut eases. * 7 Utilities Stocks to Buy With Reassuring DividendsLong story short, lithium-ion batteries are at the core of essentially every battery-powered thing in the world. Smartphones. Tablets. Smartwatches. Electric vehicles. They all use lithium-ion batteries, which are superior when compared to traditional battery technology. Lithium-ion batteries charge faster, last longer and have a higher power density (so the batteries can be smaller and lighter - super important for a phone).Consequently, demand for lithium has soared over the past decade. When that soaring demand was not met by soaring supply, lithium prices skyrocketed.Throughout 2016 and 2017, lithium prices more than doubled.But, in late 2017, new mines started to come online and flood the lithium market with more supply than it could handle. And, smartphone demand wavered because of global saturation and EV demand slowed in 2019 as governments cut subsidies.This concurrent surge in supply and wane in demand led to lithium prices falling off a cliff. Lithium mining stocks - like GALXF stock - have followed the price of the battery metal.GALXF stock has dropped about 85% off its early 2018 highs. Surging DemandThanks to the new cars, 5G and the novel coronavirus, lithium prices could again could again double over the next few years.Specifically, EV demand has re-accelerated globally in 2020 - even in the face of a pandemic - because governments across the globe have doubled down on subsidies for clean air vehicles. At the same time, Tesla's (NASDAQ:TSLA) Model 3 is going global. Plus, traditional automakers like Ford (NYSE:F) are set to unveil a slew of new EVs over the next few years. All of these actions imply that global EV demand will only accelerate into 2025.Meanwhile, global smartphone demand should also re-accelerate over the next few years, mostly thanks to the global roll-out of 5G coverage and 5G smartphones. This new technology will spark a multi-year, super-upgrade cycle in smartphones, the likes of which we haven't seen in a long, long time.Also of note, 5G will act as a mega-catalyst for all-things-IoT - and all those things are built on lithium-ion battery technology. Supply CrunchPerhaps most importantly, this surging demand in the smartphone, IoT and EV end-markets over the next few years, will be met with a supply shortage in the lithium market.We have Covid-19 to thank for that.The coronavirus pandemic has, for the moment, killed lithium demand. Lithium prices have collapsed. And the world's biggest lithium producers are postponing and/or canceling new projects.Albemarle (NYSE:ALB), the world's largest lithium company, has significantly delayed expansion plans. Specifically, over the past few quarters, the company has announced plans to delay new projects which would've added about 200,000 tonnes of processing capacity. The 2020 budget has also been cut.Chile's SQM, the world's second-largest producer of lithium, has pushed back its own big expansion plans from late 2020 to late 2021. Australia's Wesfarmers has delayed a final investment decision on its Mount Holland project. China's Tianqi Lithium has postponed commissioning the first phase of its Kwinana project.All in all, producers are cutting back on supply ahead of what will be a demand surge over the next few years.That combination ultimately implies that lithium prices are ready to rebound in a big way. And that's great news for GALXF stock. Galaxy Resources Stock to the Moon?Galaxy Resources is a smaller, lithium mining company with three projects.One of the projects, Mount Cattlin in western Australia, is operational. Another, Sal de Vida in Argentina, is in development, with production targeted for 2022. The third project, James Bay in Canada, is in the exploratory stage and should be in production within five years.In other words, Galaxy Resources is one of the rare lithium mining companies that projects to dramatically expand mining capacity over the next few years.If this dramatic expansion is met with soaring lithium prices, then GALXF stock could soar.Simply consider that when, in 2017, Galaxy Resources had just one operational mine in western Australia and lithium prices were high, GALXF stock was up at $3.50. If lithium prices rebound to or above that level again - a very possible scenario - and Galaxy Resources has two or three operational mines, then it reasons that GALXF stock could soar to $7 or even $10+.But, at the same time, if lithium prices don't rebound and Galaxy Resources keeps expanding production, the company could be in for a world of hurt. Bottom Line on GALXF StockThe best way to look at GALXF stock is as a highly levered play on lithium prices. If lithium prices do rebound with force over the next few years, GALXF stock will soar. If not, this stock could continue on its multi-year decline.I'm optimistic that lithium prices can bottom out over the next few months, and proceed to rebound significantly back to and potentially even above their 2017 highs. This will come on the back of surging smartphone, IoT and EV demand, as well as a supply crunch thanks to the world's biggest suppliers canceling projects amid the Covid-19 pandemic.If that does happen, then GALXF stock will turn into a multi-bagger.Luke Lango is a Markets Analyst for InvestorPlace. He has been professionally analyzing stocks for several years, previously working at various hedge funds and currently running his own investment fund in San Diego. A Caltech graduate, Luke has consistently been recognized as one of the best stock pickers in the world by various other analysts and platforms, and has developed a reputation for leveraging his technology background to identify growth stocks that deliver outstanding returns. Luke is also the founder of Fantastic, a social discovery company backed by an LA-based internet venture firm. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * America's 1 Stock Picker Reveals His Next 1,000% Winner * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * Radical New Battery Could Dismantle Oil Markets The post Galaxy Resources Offers a Lithium Rebound Play appeared first on InvestorPlace.
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Velodyne Lidar to Go Public In Merger With Blank-Check Firm Graf
(Bloomberg) -- Velodyne Lidar Inc., a maker of sensors for self-driving vehicles backed by Ford Motor Co., has agreed to merge with blank-check company Graf Industrial Corp., according to a statement Thursday.The market value of the combined company will be about $1.8 billion, according to the statement, which confirmed an earlier Bloomberg News report. New institutional investors and existing Graf Industrial shareholders have committed $150 million to fund the transaction.Velodyne backers including Ford, Baidu Inc., Nikon Corp. and Hyundai Mobis will retain an 80% stake in the combined company. The San Jose-based company will have about $200 million in cash on its balance sheet, and David Hall, Velodyne’s founder, will become executive chairman. Velodyne Chief Executive Officer Anand Gopalan will continue to lead the company.Velodyne creates radar-like systems for self-driving vehicles that use lasers to generate three-dimensional images of a surrounding environment. Its technology is used by carmakers including Mercedes-Benz and Ford, according to its website.Graf Industrial, a special purpose acquisition company, or SPAC, raised $225 million in an initial public offering in 2018.Merging with a SPAC has become a popular way for companies to go public as the coronavirus pandemic roils the markets, as an alternative to an initial public offering or direct listing. Online gambling company DraftKings Inc., potato chip maker Utz Quality Foods and fitness company F45 Training Holdings Inc. also struck deals with SPACS in recent months.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
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Is SiriusXM Stock a Buy as It Gasps for Air?
American satellite radio leader Sirius XM (NASDAQ:SIRI) had put together a pretty solid five years of growth. Up until the novel coronavirus pandemic hit, that is. Starting in February, SIRI stock went off a cliff, with shares losing 40% of their value in just four weeks. Since hitting a four-year low of $4.44 in late March, SIRI has begun to claw its way back -- but it's been a rocky road. Now trading at $5.87, it remains well under its 2020 high close of $7.34, which makes the stock an interesting proposition for those willing to take on some risk.Source: Shutterstock This C-rated stock has real potential to at least regain the levels it traded at in February. With that alone representing 25% upside, it's worth looking at what the future looks like for SiriusXM. But again, before we go further, keep in mind that the prospects here are more risky than those with the A-rated stocks I usually focus on. The Impact of the Pandemic on SiriusXM's BusinessOn April 28, with SIRI stock at $5.76, Sirius XM released its first-quarter earnings.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe company performed better than had been expected, noting: "The COVID-19 pandemic did not have a material effect on our revenue and expenses during the quarter ended March 31, 2020."Revenue was up 12% year over year to $1.95 billion. Profit of $293 million and earnings of 7 cents per share were also up significantly from last year's $162 million and 3 cents per share. Furthermore, "SiriusXM added approximately 69,000 net new self-pay subscribers in the first quarter," while the company's Pandora streaming music service added 51,000 new self-pay subscribers. The company repurchased $243 million in shares during the quarter, and paid out dividends of $59 million. * 7 Utilities Stocks to Buy With Reassuring Dividends SiriusXM stock popped the next day, but quickly began a three-week slide. The problem is those positive numbers weren't the full story. The pandemic was having an impact, and the company was concerned about how bad that could get going forward.Among the warning signs, despite the 69,000 new SiriusXM subscribers, the satellite radio service actually lost a total of 143,000 subscribers for the quarter. The company withdrew its 2020 guidance, with some rather ominous statements about what might happen in the second quarter: "Auto sales, advertising and customer responses to marketing campaigns all fell swiftly in the second half of March." An Extended Recession Is Bad News for SiriusXMSiriusXM faces several big challenges going forward, and both would be made worse if the current recession deepens.SIRI stock is a consumer discretionary stock. It can rise and fall based largely on consumer demand. Over the past five years, that has been a big plus for SiriusXM investors. Prior to the start of the coronavirus crisis at the end of February, the stock had grown in value by 94% over the past five years. Consumers increasingly opted for a satellite radio subscription, especially in their vehicle.A deep and lengthy recession will result in fewer new subscribers, and more existing customers cancelling their subscription. Satellite radio is a luxury, a discretionary expense. We saw the first signs of that with the net loss of 143,000 Sirius XM subscribers in the first quarter.The second problem is new car sales. SiriusXM gets a big adoption boost by partnering with auto companies to provide a free trial to its service in new cars. Many of those new car buyers get hooked and end up paying for a subscription. But car companies are in trouble. Ford (NYSE:F) has seen its stock plummet and its debt downgraded to junk status.If jittery consumers stop buying cars, SiriusXM loses a key entry point for signing up new subscribers. Bottom Line on SIRI StockAll of this sounds a bit negative, but I think we are looking at worst case scenarios. Remember, this is a profitable company, and one that has built a successful business model. Without a doubt, it is going to feel some pain -- and I think you can see that reflected in the reluctance of SIRI stock to charge back to pre-pandemic levels. But in the long term, the current low price represents a buying opportunity. SiriusXM has been through a punishing recession before, and the company has this message for worried investors: "Just as it was a little over a decade ago during the global financial crisis, SiriusXM's subscriber-based business model is resilient. We do not know what the shape of a recovery from this current crisis will look like, however, we are confident that our business will continue to generate substantial positive free cash flow."With all of that said, there's room for optimism, albeit extreme caution is undoubtedly warranted as this is not an A-rated stock.Louis Navellier had an unconventional start, as a grad student who accidentally built a market-beating stock system -- with returns rivaling even Warren Buffett. In his latest feat, Louis discovered the "Master Key" to profiting from the biggest tech revolution of this (or any) generation. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * America's 1 Stock Picker Reveals His Next 1,000% Winner * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * Radical New Battery Could Dismantle Oil Markets The post Is SiriusXM Stock a Buy as It Gasps for Air? appeared first on InvestorPlace.
- Yahoo Finance Video
Ford, Disney partner for Bronco deal
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Ford Posts Best Retail Share In Five Years – Driven by Ford’s ‘Built for America’ Program And Strong Share Gains Coming From Pickups, Vans, Explorer and Mustang
Ford Motor Company (NYSE: F) today reported its second quarter 2020 U.S. sales results. Click here or visit media.ford.com to view the news release.
- Business Wire
Ford and Disney Gear Up to Reveal All-New Ford Bronco Family, Across ABC, ESPN, National Geographic and Hulu
Ford Motor Company will reveal the all-new Ford Bronco 4x4 family on Monday, July 13 across Disney’s Media Networks – marking the first-ever, prime-time product reveal roadblock across Disney’s broadcast, cable, digital and streaming properties, including ABC, ESPN, National Geographic and Hulu.
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Despite growing ad boycott, Facebook is too big for many advertisers to ignore
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- MarketWatch
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The coronavirus pandemic is “not even close to being over,” according to the head of the World Health Organization, and the worst is still to come, in what was a grim assessment of the state of affairs some six months after the first cases were reported in China.
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Facebook agrees to audit its hate speech controls
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