Ford Stock Moves as Bet on Argo AI Fails
Ford (NYSE:F) stock is on the move on Thursday after the automotive company released third-quarter results.
The big news affecting F stock today is a $2.7 billion negative impact reported by the company due to its investment in Argo AI. Ford had heavily invested in the self-driving car startup, but Argo AI is now winding down its business.
Ford’s poor investment in Argo AI resulted in it suffering an $827 million net loss during Q3. That translates to earnings per share of 30 cents, which matches what Wall Street had expected from the company.
The Future of Ford Autonomous Vehicles
While Ford’s plan to foster its own technology for self-driving cars has failed, it isn’t giving up on the endeavor entirely. Comments made by CEO Jim Farley suggest that the company will instead buy autonomous tech from other companies to use in its vehicles.
Ford CFO John Lawler echoed this sentiment in a statement to CNBC.
“It’s become very clear that profitable, fully autonomous vehicles at scale are still a long way off […] We’ve also concluded that we don’t necessarily have to create that technology ourselves.”
F stock has been volatile today, with shares seeing a sharp fall this morning after the earnings report release. However, the stock has recovered since then and is currently up 1.3% as of Thursday afternoon.
Investors seeking out all of the latest stock market stories are in luck!
InvestorPlace is ready to go on Thursday with the biggest stock market stories. A few examples include the news moving shares of ServiceNow (NYSE:NOW), Tesla (NASDAQ:TSLA) and Altra Industrial Motion (NASDAQ:AIMC) stock today. You can read up on all of that below!
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.