Correlation/causation, I know — but the ticker surely delighted shareholders Monday after Fernando Alonso brought #ElPlan to the Britain-based F1 team.
Max Verstappen and Red Bull were the ostensible runaway winners of the 2023 Formula 1 world championship campaign’s opening weekend, but if you’re looking for an outfit whose stock rose the most at Sunday’s Bahrain Grand Prix, look no further than wily, upwardly-mobile Aston Martin.
And their stock wasn’t up on the track, either.
One day after decorated veteran Fernando Alonso landed a podium finish to put an impressive stamp on his debut with the Aston Martin Aramco Cognizant F1 Team, with teammate Lance Stroll finishing a spirited P6 to boot, the British automaker’s stock soared upward as markets opened on Monday, leaping about 25% above its previous closing price.
The Nando Effect: the Aston Martin stock on the LSE shot up to 300 this morning after Alonso put the AMF23 on the podium this weekend.
— Vincenzo Landino (@vincenzolandino) March 6, 2023
Stroll with pins in his wrists and a broken toe took a respectable P6. https://t.co/INAAeFfWFz pic.twitter.com/hJBOr7EtYh
All told, race weekend was a big moment for “El Plan” — the two-time world champion Alonso’s colloquial term for his blueprint for F1 victory that has since become part and parcel of Formula 1 meme culture — and $AML stockholders alike. And while the Bahrain Grand Prix surely did not do a thing to hurt the automaker’s outlook, financial analysts have identified at least one other major force behind the Monday morning stock surge.
As noted by Joe Easton and Alexandra Muller of Bloomberg, a short squeeze — a term that refers to a significant jump in short-selling of a company’s stock — likely contributed at least somewhat to the day’s head-turning numbers rather than the underlying indicators experts typically look for. “[It] could be some shorts covering or generally improved perception on the back of reassuring FY22 results. It’s also possible the F1 performance could have something to do with it,” ODDO BHF equity analyst Anthony Dick told Bloomberg.
Fernando Alonso! Takes podium at #BahrainGP #F1 🇪🇸 🏆
— F1 Central (@F1_Cen) March 6, 2023
pic.twitter.com/AzxGQsga44
In any event, we’ve begun the week witnessing the financial equivalent of a DRS boost propelling Aston Martin’s faster-than-expected, Mercedes-powered AMR23 car down a straightaway.
Their car may not be able to jockey with Verstappen, Sergio Perez, and Red Bull for top honors this year in the world’s richest auto racing competition — it’s sure looking like no one can. But if Alonso, Stroll, and Co. can keep finding opportunities to outfox traditional top dogs like Ferrari and Mercedes on the grid, don’t be so surprised if the Aston Martin stock trendline continues to warrant a double-take.
UPDATE 3/7: Aston Martin did some major numbers across social media platforms during race weekend, too:
Aston Martin Stock Price: Past Month Thru March 6, 2023
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