Ford

What is F stock?

F stock is the listing name of the shares belonging to Ford Motor Company, the global automobile manufacturer based in the US. Listed on the New York Stock Exchange, Ford Motor Company stock is also featured as a component of the S&P 100, due to its large market capitalisation.

The company operates three areas within its business – automotive, Ford credit and mobility, although it's best known for the global manufacturing of vehicles. As well as Ford cars, the company also owns Lincoln Motor Company, an acquisition gained in 1922, which operates as a separate division. Lincoln Motor Company is a luxury brand, offering iconic and stylish vehicles to a high-end target audience.

As one of the leading multinational motor companies, Ford had a revenue of over $158 billion in 2022 and has plans to invest $50 billion in electric vehicles within the next two years. Founded by Henry Ford in the early 1900s, the company has continually focused on innovation with the original Ford Mondeo and Ford Transit van becoming best-sellers.

Ford Motor Company stock was publicly offered in 1956, with its shares priced at $64.50. Since then, its stock has been split six times.

In 2023, despite an increase in revenue from 2022 of 20%, Ford stock has suffered significant volatility, with the share value dropping from its July high of $15.35.

How has the Ford Motor Company share price performed historically?

The Ford share price remained relatively stable from its initial listing on the NYSE until the 1990s when it began to rise. In 1999 the value climbed to over $30 per share, before dropping significantly in the early 2000s. This was mainly due to a $5.45 billion net loss in 2001, following a $3.47 billion net profit in 2000.

This loss was due to a variety of factors, including investing in precious metals that were no longer needed because of technological advancement. With huge job cuts and plant closures, Ford focussed on a turnaround plan to get the company back on track.

On the back of this, the Ford company stock dividend was reduced before being removed in 2007. In 2008, Ford suffered due to the financial crisis and its shares became penny stock as the value dropped below $2.

Since then, Ford has achieved greater profits and increased its share price, along with reintroducing its dividend. In 2011, it saw its largest profits since 2000 which, in turn, had a knock-on effect on the Ford stock price.

Ford achieved a stock price high of $25.19 at the beginning of 2022. But recent months have seen a return to volatility amidst reports of losses in its electric vehicle segment.

As it stands, the Ford share price is just under $12 as of October 2023. You can check the Ford stock price today using our live chart.

What influences the Ford Motor share price?

Being aware of the key factors that affect the price of F stock can help you identify opportunities when trading.

• Economy: Global economic conditions can greatly affect the performance of Ford shares, particularly during recessions and high inflation.
• New vehicle technologies: The emergence of new and advanced technologies can influence Ford stock, either negatively or positively. For example, if a competitor releases an innovation, Ford is likely to suffer a drop in value.
• Acquisitions and mergers: These can affect the F stock value, depending on the nature of the other company and the situation. Often, mergers and acquisitions create a period of instability which can derail the stock price for a short period.
• Company reports and releases: News of unexpected profit or loss, an increase or decrease in revenue, job cuts and turnaround plans are all aspects that can affect the share price and, in turn, influence trader sentiment.

How to trade or invest in F stock

You can either trade or invest in Ford stock via the following options:

Invest in Ford stock directly

You can choose to buy or sell Ford Motor Company stock directly via your Tradu account. Buying F stock means you'll take ownership of the shares, which you can then sell later to make a profit.

This is generally more suited to long-term strategies as you can only profit from stock price increases. However, this method has the benefit of being exposed to less volatility, which is often prevalent in short-term trading.

Trade Ford stock using derivatives

If you prefer, you can speculate on the price of F stock movements via financial derivative products:

• CFDs: These allow you to speculate on share value and agree to exchange the difference between prices at a set date in the future.

This trading method allow you to profit without having to own the underlying asset. You can trade both bull and bear markets and use leverage to capitalise on your trades. But remember, this can magnify losses as well as profits.

Pros and cons of trading F stock

Like any stock, there are advantages and disadvantages to trading Ford shares.

Pros of trading Ford stock

• Highly liquid stock: Significant volumes and large market cap mean that Ford stock trading is in high demand and easily accessible.
• Leading global company: Ford Motor Company is one of the top names in the automobile industry, with its manufacturing and development spanning multiple countries. As well as trading stock from a large company, you'll gain access to a popular world market.
• Multiple trading methods: Invest long-term or choose to speculate on either market direction with financial derivatives.
• Access to company reports: Ford reports its revenue quarterly throughout the year. Coverage of company performance can easily be found thanks to its prominent status within the industry. Fundamental analysis can be carried out alongside technical analysis to help you identify the best trading opportunities.

Cons of trading Ford stock

• Market volatility: Any stock trading can expose you to risk from market volatility. As we've seen with Ford, there are various factors to take into consideration when trading its stock as multiple influences can affect the share value.
• Exposure to only one market: Ford Motor Company shares can be a worthwhile asset but it’s still important to expand your portfolio to reduce your overall risk.
• Risk of leverage: While leverage can help you maximise profit potential, it also comes with a risk of increasing any losses. It's a good idea to put risk management strategies in place to minimise loss.

How to start trading or investing Ford shares with Tradu

1. Open a Tradu account online: Register for an account or log in and add funds directly.
2. Plan your strategy: Set goals based on your capital and risk tolerance and refine your trading plan to get the most out of your trades.
3. Analyse the market: Use fundamental and technical analysis to help forecast the Ford Motor Company stock price.
4. Open your position: Decide on your market direction then place, monitor and exit your trade. Set stop loss orders to reduce risk.
5. Diversify: Reduce overall risk and add a range of other asset classes to your trading portfolio.