Unprecedented surge in share price as Hamilton moves to Ferrari

Lea Hogg February 1, 2024

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Unprecedented surge in share price as Hamilton moves to Ferrari

The Formula 1 world was taken by surprise with the news of Lewis Hamilton’s move from Mercedes to Ferrari. The announcement, expected to be made official soon, has already had a significant impact on Ferrari’s market value. The company’s share price on the New York Stock Exchange soared over 10 percent, hitting a record high.

Hamilton’s decision to join the Maranello squad alongside Charles Leclerc has sent shockwaves through the F1 community. The news broke out following a meeting at the Mercedes factory in Brackley, hosted by team boss Toto Wolff and technical director James Allison.

The switch leaves Mercedes with a challenge to find a suitable replacement for Hamilton. Potential candidates like Lando Norris and Leclerc are already contracted elsewhere.

Game changer for share price

The wider impact of Hamilton’s decision is evident in Ferrari’s skyrocketing company value. Following a positive statement about its revenue and core earnings, Ferrari’s share price experienced a notable increase. The company’s estimated market capitalisation now stands at $69.12 billion, a significant rise from the $62.4 billion at the close of trading on today.

This nearly $7 billion increase in company value is a massive vote of confidence in Ferrari’s decision to sign Hamilton. The current stock price of Ferrari is significantly higher than its 12-month low of $252.17.

Impact on sports betting

Hamilton’s move to Ferrari in 2025, replacing Carlos Sainz, whose contract ends this year, is set to shake up the sports betting landscape. As one of the most successful drivers in F1 history, Hamilton’s switch will undoubtedly influence betting odds and strategies. Punters will need to consider the potential impact of this change on the performance of both Ferrari and Mercedes. This development adds an exciting new dimension to Formula 1 betting, making the 2025 season one to watch for both F1 and betting enthusiasts.

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