Posted 12/8/2023, 2:53:00 PM
Ford Struggles Through 2022 Market Downturn With Steep Share Price Decline and Massive Debts Burden Recovery
- Ford stock dropped 44% in 2022, performing worse than the broader market indexes during a down year
- As a cyclical business, Ford depends on a strong economy and low interest rates, so it struggles in recessions
- The auto industry requires massive investments in R&D, factories, marketing which leaves Ford with huge debts
- Companies like AutoZone that sell tools/supplies tend to be recession-resilient, unlike automakers
- Even in 2023's market rebound, Ford stock has failed to participate and is down 8% year-to-date