Legacy automaker Ford (F) opened up a new potential sales channel recently, though investors did not seem especially happy about the move. Ford got together with Amazon (AMZN) to offer up access to a used car inventory that is as easy to purchase as Amazon can make just about anything. But despite this, investors still pulled back, and sent Ford shares sliding nearly 3% in Monday afternoon’s trading.
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Those hoping for a brand new Ford on Amazon will be disappointed, as the Amazon cars are limited to used car inventory only. However, the vehicles available will be “certified pre-owned,” a class that comes with some extra protection. The vehicles will receive the standard Ford inspection and reconditioning, and will also get a Ford warranty. Some of the vehicles will even boast a money-back guarantee.
Once purchased, shoppers will then proceed to their local Ford dealership for in-person pickup. The bad news for most shoppers here, however, is that only shoppers in Dallas, Los Angeles and Seattle will be able to get in on the action. At least for now; Amazon notes that it looks for more markets to come online soon. The fact that Detroit is somehow out of this action is a puzzling development.
RIP Focus
Meanwhile, Ford reached the end of an era. The last Ford Focus has been produced, and this white hatchback rolled off the line for the final time at Ford’s Saarlouis plant. This is actually part of a string of canceled models that got their last rollout in recent years.
The Fiesta shut down production in 2023, while the Mondeo was lost in 2022. The Ka, meanwhile, was out the door in 2020, and this left Ford effectively without a regular car in the entire lineup. This is, admittedly, in keeping with Ford’s new maxim of “no boring cars,” but it also left Ford lacking regular cars in general. With a new supercar model potentially arriving, though, this may give Ford a model back in that line.
Is Ford Stock a Good Buy Right Now?
Turning to Wall Street, analysts have a Hold consensus rating on F stock based on two Buys, nine Holds and two Sells assigned in the past three months, as indicated by the graphic below. After a 17.66% rally in its share price over the past year, the average F price target of $12.14 per share implies 5.38% downside risk.
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