Why Ford Stock Could Buck Market Sell-Off After April Fall
Ford (NYSE: F) stock tumbled 16.3% in April, according to data provided by S&P Global Market Intelligence. That's nearly twice as bad as the S&P 500's decline last month. There were some worrisome developments in the period, but if you look beyond the headlines and the latest updates from the company, the worst now seems to be baked into the auto stock's price.
Ford shares crashed the very first week of April after the auto giant suspended production at a Michigan plant because of a shortage of semiconductor chips. Days later, the company announced a 25.6% drop in its total vehicles sales for March, including a 34.4% drop in truck sales, again citing chip supply constraints as the primary reason.
On top of the chip shortage, rising coronavirus cases in China and the ensuing lockdowns emerged as a fresh threat to Ford's growth. Combined, the two factors sent the company's sales in China dipping 18.8% year over year in the first quarter of this year.
Source Fool.com