Gainers📈 & Losers📉

Our Biggest Gainers & Losers of the Day in the $100,000 Build Portfolio

For the 6th February 2025:

• $185B? Still Not Enough?! 🤯

• News Without The Nonsense 📰

$185B? Still Not Enough?! 🤯

Ford just dropped its Q4 earnings. The stock reacted like it hit a pothole at 80mph. Down over 7% & stuck at a 16-month low. 💀

On paper, things actually looked pretty decent. Record revenue, booming hybrid sales, & cost-cutting that actually worked.

So why are investors hitting the emergency exit? 

Turns out you need a mechanics eyes for under the hood. EV struggles, warranty nightmares & tariffs that ready to send profits straight to the scrapyard. Let’s pop the lid & see what’s really going on. 🚗💨

Growth & Dividends Keep Rolling

✅ Record revenue. $185B in 2024, up 5% YoY. Solid.
✅ Hybrid trucks are CRUSHING it. I don’t love the idea of a fully electric vehicle & it looks like people agree with me. Customers aren’t fully committing to EVs yet. Because of that, Ford’s hybrid move is paying off.
✅ Subscription revenue is growing. Ford Pro’s software subs jumped 27% to 650,000. More recurring revenue = more predictable earnings = investor’s dream. Since when were Ford a tech company? 👀 
✅ Cost-cutting is working. $500M in savings in H2 2024. Another $1B planned for 2025.
✅ Dividends are flowing. Regular $0.15/share payout + an extra $0.15 special dividend. Ford’s always been great at returning cash to shareholders. Right now the yield sits at ~8.4%

Pretty impressive, right? If that was the whole story, I’d probably be asking my Nan to borrow her pension to load up even harder on Ford stock. But it’s not (so her pension’s safe… for now…)

EV Struggles & Margin Pressures🚨

❌ EVs are still a dumpster fire. Revenue down 35% in the Model e segment. Ford’s trying to pivot to smaller, more affordable EVs, but the competition (aka China) is moving 10x faster.
❌ Tariff trouble incoming. Ford CEO Jim Farley didn’t beat around the bush. He said new tariffs on Mexico & Canada could wipe out billions in industry profits. That also means higher prices for customers. Fantastic.
❌ Warranty costs are a black hole. Ford’s been bleeding cash from repair costs, supplier issues, and defects. It’s already cost them hundreds of millions per quarter. They’re scrambling to fix it with AI, supplier crackdowns, and better quality control.
❌ Guidance was weak. Ford expects $7B-$8.5B in 2025 adjusted EBIT, which is way down from the $10.2B they just posted.
❌ Q1 is gonna be rough. Ford’s already predicting a breakeven quarter before things (hopefully) pick up in the second half of the year.

WHAT NOW?

I think Ford’s making the right moves. Hybrids, cost-cutting & software are a recipe for success.. The EV mess, competition from China, & industry headwinds do leave some pretty big question marks that need answers.

I’ve used the drop to scale up my position heavily. Over double. That makes Ford about 1.3% of the portfolio.

Impacts of tariffs are one of the bigger concerns. Trump is fear mongering with them. I don’t think they’ll come to fruition. They’ve already been pushed back but if they do end up happening, I expect they’ll be short lived.

And Ford have already had some impressive wins with cost cutting. That, combined with continued success in hybrid sales & software subscriptions is enough to carry them through the tough times.

I’m buying the risk…. & that 8.4% dividend yield is a pretty decent safety net to fall back on if all else fails.

News Without The Nonsense 📰 

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That’s all! See you same time tomorrow 👋 

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