Formula One Group: FWONK stock near ATH as new season starts

By:
on Mar 1, 2024
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  • Formula One Group shares are nearing their all-time high.
  • The 2024 season will kick off in Bahrain this week.
  • Formula One has become highly profitable and its growth is continuing.

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Formula One Group (FWONK) stock is nearing its all-time high as the new season starts in Bahrain this week. It jumped by over 4% on Thursday as it closed at $72.76, the highest point since August 27th. It is now approaching its all-time high of $78.67.

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Formula 1 new season starts

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The biggest event this weekend will be the start of the 2024 season of Formula One event in Bahrain. This event will be watched closely by millions of viewers around the world who will mostly focus on its competitive state. 

Most viewers will watch closely the performance of key teams and whether RedBull will continue dominating as it did in 2023. Red Bull’s Max Verstappen won 19 of the 21 races. While this dominance broke records, it also led to less viewership.

Still, the most recent results showed that Formula One Group was in a healthy financial space. That’s because it has continued to receive huge sums of money from hosts, media companies, and other players in the industry.

Its total revenue grew by 25% in 2023, helped by rising ticket prices and the addition of the Las Vegas venue in the United States. This trend will likely continue this year as more corporate sponsorships are expected to join. 

Formula One Group also has a healthy balance sheet. It had over $1.4 billion in cash and liquid investments against total debt of $2.9 billion. It also has about $533 million of an additional revolver, which has been undrawn.

Analysts believe that Formula One has more room to grow, especially if this season becomes more competitive than it was in 2023. 

One area that has a lot of potential is in its women segment. The company unveiled the Formula One women academy, which is led by Susie Wolff, the wife of Mercedes Principal, Toto. Still, it will take a few years before a purely women league kicks off.

Further, more women and young people are watching Formula 1 races these days. The average age of the audience stands at 37 while women and girls represented about 40% of the fanbase. Also, 

FWONK stock price forecast

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Formula One Group

FWONK chart by TradingView

The weekly chart shows that the FWONK share price peaked at $78.67 in 2023 and then pulled back to the key support at $60.95 in the last quarter of 2023. It formed a small double-bottom pattern there and has now bounced back.

FWONK has remained above the 50-week and 100-week Exponential Moving Averages (EMA), which is a positive sign. Further, key momentum oscillators like the Relative Strength Index (RSI) and the MACD have all pointed upwards.

Therefore, the path of the least resistance is bullish, with the next point to watch being at $78.67, its highest point in 2023. A move above that level will point to more gains, with the next reference level being at $80.

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