The Aston Martin Lagonda Global Holdings PLC (LON: AML) share price was trading up 22.3% after yesterday's first race of the Formula 1 2023 season in Bahrain saw its F1 drivers perform well. Aston Martin’s Fernando Alonso was position 3 in the race behind Red Bull’s Max Verstappen and Sergio Perez.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.
The ultra-luxury car manufacturer had seen its sales surge since rejoicing the Formula 1 championship in 2021 when Lance Strowll’s Racing Point F1 team was rebranded to Aston Martin. The Formula 1 racing championship brought much-needed global visibility to the Aston Martin brand and higher sales.
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Aston Martin’s second driver Lance Stroll came in position 6 and scored crucial points for the team, fighting for a top-three finish this year. However, it is too early to tell whether Aston Martin’s current top form shall continue throughout the season, given that this was the first race.
The AML share price has risen 48.39% over the past week as investors reacted positively to the ultra-luxury car manufacturer’s impressive financial results for 2022, released on 1 March 2023. AML shares have rallied higher since then and show no signs of stopping after yesterday’s Bahrain Formula 1 race results.
However, savvy investors should be asking, “are we due for a pullback” at this stage. And the short answer is yes, we are due for a pullback, given the parabolic nature of Aston Martin’s rally over the past few days.
Aston Martin’s share price rally has turned parabolic, and I wouldn't buy at current prices. At the very minimum, we could get a sideways trend as the buyers take profits before the next uptrend begins, but we are more likely to get a pullback before the rally continues.
The ultra-luxury car manufacturer reported a 26% increase in its full-year revenues for 2022, which were £1.4 billion compared to 2021’s £1.1 billion. The higher revenues were driven by robust demand for its vehicles and a record average selling price (ASP) of over £200,000 per vehicle.
Aston Martin expects to maintain the same pricing trends in 2023.
*This is not investment advice.
The Aston Martin share price.
The Aston Martin share price has risen 48.39% in the past week and was trading up 22.34% at writing.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.