The value of Ford stock decreased during the March 9th, 2020 – March 13th, 2020 timeframe. Shares closed the week at $5.63 per share, which represents a decrease of $0.86 per share, or 13 percent, compared to the prior week’s closing value of $6.49.
Ford shares saw the following movement during the week:
- Monday, March 9th: Ford stock opened the week at $5.97 and closed at $5.90
- Tuesday, March 10th: Ford stock opened at $6.26 and closed at $6.26
- Wednesday, March 11th: Ford stock opened at $6.06 and closed at $5.90
- Thursday, March 12th: Ford stock opened at $5.38 and closed at $5.35
- Friday, March 13th: Ford stock opened at $5.87 and closed the week at $5.63, or $0.86 lower than the prior week
Ford share values continue to see historic lows, with last week’s closing value of $6.49 per share being the lowest recorded value in over a decade. After coming under pressure, Ford CEO Jim Hackett recently changed things up on the FoMoCo executive roster, replacing Joe Hinrichs with Jim Farley as COO. Notably, the decline marks the ninth consecutive week of decline for Ford stock.
By comparison, shares of Ford’s cross-town rival – General Motors Company – decreased $3.98 per share, or 14 percent – during the March 9th, 2020 – March 13th, 2020 timeframe.
It’s evident that the ongoing coronavirus pandemic is responsible for the downward performance of stocks, including Ford stock. The disease, sometimes deadly, has caused major instability in global markets, while also disrupting various business operations, particularly those in China. In fact, trading was stock suspended on Monday, March 8th due to plummeting stock values associated with the Coronavirus-related instability.
Coronavirus-related items aside, we are interested in seeing how Ford stock will perform throughout the rest of 2020, especially in light of various actions taken by the Dearborn-based automaker throughout 2019 and into 2020. The company has taken steps to optimize its business by discontinuing all sedans to focus on more profitable crossovers, SUVs, and pickup trucks in North America, while at the same time investing in resource-intensive autonomous vehicle technologies like its Argo AI autonomous service as well as electric vehicles. Both initiatives have yet to result in a positive ROI for any automaker.
It’s worth noting that The Blue Oval started both efforts much later than its direct rivals. For instance, FCA was the first to discontinue most of its sedan portfolio and General Motors started to invest heavily into EVs and autonomous vehicles much earlier than The Blue Oval. In July 2019, Ford announced details of its partnership with Volkswagen that would result in VW investing in Ford’s Argo AI venture.
In November 2019, The Blue Oval announced the new Ford Mustang Mach-E – an electric, four-door crossover inspired by the legendary Mustang pony car. Set to go on sale in about a year, the vehicle represents the direction in which Ford is going as a company and where it’s taking its vehicle lineup. It also shows that Ford isn’t afraid to upend legendary nameplates. Initially, Ford stock didn’t see any movement in value following the announcement. However, the automaker sold out the introductory Mustang Mach-E First Edition variant, which is a promising development, if it should serve as an indicator of future Ford share values.