Ford has a big drop around 10% in the past week. They had a conference call that stated they would be lowering 2014 forecasts. This meant they would be in-line with 2013’s forecast, their profits would be less, their revenue would be still increasing, but the earnings would be less than they had forecasted in the past. The profit margins were expected to be 10%+ but instead it will be in-line with 2013 at 8-10%.
This drop is a short-term occurrence that will be a small blip in their future. Remember, they are still a small-cap car company if you compare them to Honda (HMC) and Toyota (T). They will have 23 new cars coming out in 2014 and they stated the marketing budget would reduce their profit margins. Yes, this is short-term weakness but for the long-term holder they will do really well. Remember, by making this international play, they will become an international growth play not just a North American growth stock.