If Ford is the best selling brand in the US, then why is Ford stock only selling for: $12.58 today?
Since Ford is such a popular brand, you'd think the stocks would be selling for a lot more! It seems like it would be selling for about $5,000 per share.
What is affecting Ford to make the stock be so low?
In 2007, I remember it was at $11.00/share. It has gone up a little over the past 10 years, but not significantly.
Why?
Stock sells for what investors are willing to pay for it. Ford isn't doing as well as you imagine.Their stock is steady since the company is stable. They are putting money back into the company instead of squandering it on greedy investors.
Some companies do not like their share's price to be too high, since it makes buying a regular lot (a regular lot is 100 shares) too expensive for small investors. When shares go too high, the company splits the shares, and each share becomes two new shares.
The value of a share is only determined by how much investors are willing to pay for them. And that willingness depends on what investors think it will be worth tomorrow, next week, next month of next year.
Stock price is a measure of projected future income stream, not the present or past income streams. When future income is expected to rise, the stock price will go up. When income is stagnant, the price will stay stagnant and most often comes down as investors sell to find value in other stocks. When a company is going bankrupt, the stock will be pennies.
Take note, it is not revenue but income. Ford's income for FY 16 was $4.6B compared to an income of $7.3B from FY 15. Revenue has been flat for the last 4 years. "Best selling brand" does not mean anything. You have to look at the financials of a company. Compare this to the stock of Facebook and you will see why FB has risen ninefold since 2013.
https://finance.google.com/finance?q=NYSE%3AF&fstype=ii&ei=C1gvWpHcJdTuuASohYGYBA
https://finance.google.com/finance?q=NASDAQ%3AFB&fstype=ii&ei=h1ovWsWQOcqzuwT6o4GAAg
Ford shares COULD be worth $5,000 each if Ford did not have as many shares available in the stock market. The more shares a company issues, or splits, the less each share is worth.
You want a pricey stock, buy Berkshire Hathaway class A. It's never split since Warren Buffett began assembling the conglomerate, and now it's worth about $290,000 per share.
One issue for Ford is that there are two classes of stock and the Ford family owns all of one class.
Yea
This is not a car question, it's an investment question. Google this: stock basics investopedia where you can find a LOT of info on the stock market. The answer is much too long for YA BTW, at the beginning of the Bush recession, Fore was selling for about $1.00 because nobody thought the company would survive if Chrysler and GM went down.
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