In today’s financial world, it is possible to invest in virtually anything. Thanks to sports, many investors are attempting to turn their hobbies into financial gain. Investing in the UFC, Manchester United FC, the Atlanta Braves, the Kentucky Derby, and sports and arenas such as Madison Square Garden (MSG) is possible. As for Formula 1 stock, it was acquired by Liberty SiriusXM Group in 2016, allowing investors to participate in its growth on the stock market.
The Liberty SiriusXM Group IPO was released in August 2023. Many F1 racecars are also owned by companies listed on the stock market. As the transition to EV and hybrid vehicles and renewable energy is underway, new and old manufacturers are entering the game. Here is how to invest in Formula 1 stock and the automobile companies participating in these races.
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Formula 1 Introduction (No Stock Symbol)
Since 1950, the noise of an F1 engine has been sending chills down the spine of its fanbase. The sport began with 20 drivers representing ten teams participating in 6 yearly European races. The biggest and most important difference today is the number of yearly races.
F1 has grown to a global market with a record 23 races across Europe, America, Asia, and the Middle East. The organization is looking at new cities for races in the upcoming years. Last year, Miami’s Grand Prix was an instant hit for F1 and the local businesses. This year’s newest addition, Las Vegas, is expected to bring in more than $500M in revenue.
Attendance soared from 4.2M in 2019 to 5.7M in 2022. That’s more than 200,000 fans present at every race. Liberty SiriusXM Group has been doing an amazing job with F1 since purchasing it. So, what does that mean for Formula 1 stock?
Liberty SiriusXM Group
Things get a little complicated with Formula 1 stock: many stock tickers are linked to Liberty Sirius XM and F1. Here’s a quick recap:
- Liberty Media Corp Series C (NASDAQ: LSXMK): Owner of the Atlanta Braves and Formula 1, part owner of Sirius XM Satellite Radio, Live Nation Entertainment, and other companies.
- Liberty Media Corp Series A (NASDAQ: FWONA): Formula 1-related performance with voting rights for shareholders. Recent IPO in August.
- Once again, but with a different ticker, Liberty Media Corp Series C (NASDAQ: FWONK): Formula-1 related performance without shareholder voting rights. Recent IPO in August.
Since the Formula 1 Acquisition
Since Liberty SiriusXM Group acquired Formula 1 stock, revenue has doubled thanks to a larger online presence and diverse income streams. Traditionally, the sport was more popular in Europe.
However, the US has recently become its largest audience. In one year, social media presence across TikTok, Facebook, YouTube, Instagram, and Snapchat has grown by 43%.
This year, F1 will bring in an estimated revenue of $3.3B (compared to $2.57B in 2022). Wall Street expects revenue to increase by 28% this year.
The promotion generates its revenue thanks to ticket sales (28.6%), media broadcasts and streaming (36.4%), and sponsorship fees (16.9%). If yearly races keep increasing, so will the yearly revenue!
Netflix
The sport is no longer only about the winner. Fans can follow their favorite drivers and have a much more immersive experience. Formula 1 follows the steps of other sports, and it pays off.
In 2018, Netflix aired the documentary Drive to Survive, now in its 5th season. The show’s audience keeps growing as more people become interested in the fast-lane life of F1 drivers, teams, and racers.
Very few people around me knew or cared about Formula 1 a few years ago. Today, the sport’s audience is increasing rapidly, and the excitement has just begun, which can only help Formula 1 stock.
Formula 1 Stock and Apple
One of the most promising catalysts for Formula 1 stock has to do with tech giant Apple. The company is looking to acquire the global broadcasting rights for the sport, and the deal is worth around \$2B.
That’s what Apple paid for its 10-year rights to the MLS. The deal is still far from inked, but many insiders believe it will happen.
Formula 1 Stock Competitors
If you prefer engines over entertainment, many of the sport’s top manufacturers and engine designers are public companies you have certainly heard of.
You can add them to your Formula 1 stock investment. Here are some of the biggest names.
1. Ferrari (NYSE: RACE)
Ferrari and Formula 1 stock share a deeply intertwined history, with Ferrari being one of the sport’s most iconic and successful teams. It is the only team that has participated in every Formula 1 World Championship season since its inception in 1950.
Ferrari has been at the forefront of technical innovation in Formula 1 and has been a great commercial partner. However, the luxurious Italian manufacturer hasn’t had a winning driver since 2007.
As for Ferrari’s stock, it is up over 500% since its IPO in 2015. It is setting new periodic highs and trading at an all-time high. Luxury sports cars are cool, and so is the stock.
2. Mercedes-Benz (OTCMKTS: MBGYY)
The link between Mercedes-Benz and Formula 1 stock is a significant and successful partnership that has left a lasting impact on the sport.
The manufacturer has been actively involved in Formula 1 as an innovator, constructor, and engine manufacturer, which led to consecutive championships between 2014 and 2020. Recently, one of its most dominant drivers, Lewis Hamilton, gained a lot of fame and helped further promote the sport.
Mercedes’ stock hasn’t seen the same success as Ferrari’s. There have been a lot of ups and downs. However, the carmaker is still a dominant force in the car industry.
3. Renault (OTCMKTS: RNLSY)
Renault’s engines have powered F1 cars, leading to many championships in the last decades. Since the early 2000s, Fernando Alonso and Sebastian Vettel led the engine manufacturer to multiple Drivers’ and Constructors’ Championships.
Today, the French automaker focuses on renewable energy, and its board wants to dethrone Tesla. Its EV spinoff Ampere is set to manufacture and produce vehicles shortly.
Similar to Mercedes, Renault’s stock has seen many ups and downs. It is looking to solidify its presence in Europe and the EV industry.
4. General Motors (NYSE: GM)
GM doesn’t have an existing relationship with Formula 1. However, it signed up to join F1 as an engine manufacturer as of 2028, thanks to its Cadillac brand.
It also aims at a more immediate presence as Formula 1’s 11th team with a partnership with Andretti. Prototypes for hybrid models are in the works, but one challenge stands between this dream and a reality.
There have never been 11 F1 teams. The other teams are reluctant to let go of a portion of their commercial income, and the sport will change if another team joins the race.
5. Ford (NYSE: F)
Ford was actively involved in Formula 1 in the 1960s and 1970s. The Ford Cosworth DFV (Double Four Valve) engine became one of the most successful and iconic engines in Formula 1 history.
It powered numerous teams to victories and championships during that era. In the late 70s, the company shifted its focus to other forms of motorsports. Ford is looking to come back to the sport in 2026.
Final Thoughts: Formula 1 Stock
To conclude, Formula 1 stock is making waves around the world. Countries and cities are battling each other to be able to host a race. F1 is becoming more popular in the US, and the viewership gap with NASCAR is slowly decreasing.
It is also becoming more popular globally thanks to its Netflix documentary and the unique look at the ecosystem around each team and its drivers. There are many ways to invest in Formula 1. You can buy the stock directly or invest in the engine manufacturers partaking in the races.
If you want to learn more about profiting from the stock market, head to our free library of educational courses. We have something for everyone, including trading options for those with small accounts.
Frequently Asked Questions
Formula 1 stock trades under the Liberty SiriusXM Group.
You can find Formula 1 stock under the Liberty Media Group.
Liberty Media Group bought Formula 1 racing. They IPO'd in August of 2023.
