Motley Fool Money ETFs are for the Memes (again)
Oct 9, 2025
Matt Frankel and Jon Quast, both seasoned Motley Fool contributors, dive into the resurgence of meme stocks in 2025. They analyze Ferrari's disappointing guidance on electric vehicles and profit projections, questioning if it's a company issue or a broader luxury trend. The duo discusses the relaunch of the Meme Stock ETF and its implications for market sentiment. They also share their top picks among meme stocks, like SoundHound, alongside promising non-meme investments such as Target and First Solar.
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Ferrari's Growth And Valuation Gap
- Ferrari cut its EV lineup and lowered 2030 operating profit guidance, signaling more modest growth ahead.
- The stock still trades at a premium despite only modest projected growth and margins expansion.
Pandemic Luxury Surge And Used Ferrari Demand
- Matt Frankel recounts the pandemic luxury surge that helped Ferrari soar and notes many buyers finance their cars.
- He also shares seeing used Ferraris sell well, suggesting demand shifted to the used market.
Limited Ways Ferrari Creates Value
- Ferrari projects about a 5% CAGR to 2030 and minimal margin expansion, which limits shareholder value creation.
- Management plans modest capital returns equal to roughly 10% of market cap by 2030, spread thin across years.