tiprankstipranks
Ford Hires Stripe to Boost its E-commerce Plans
Market News

Ford Hires Stripe to Boost its E-commerce Plans

One of the top EV stocks, Ford (NYSE: F) has inked a 5-year deal with online payment processor Stripe to strengthen its e-commerce strategy, according to CNBC.

The deal aligns with the company’s turnaround initiatives announced under its current CEO, Jim Farley. Notably, shares of the leading auto giant have gained 151% over the past year. 

Details of the deal

Founded in 2010, Stripe is an online payment startup and sells software that enables businesses to accept payments over the internet.

According to the deal, Stripe’s technology to process digital payments will aid Ford’s financial services arm, Ford Motor Credit Company, across the North American and European markets.

Stripe will be responsible for transactions for consumer vehicle orders as well as reservations and bundled financing options for Ford’s commercial customers.

Furthermore, Ford will also utilize Stripe’s services to route customer payments from its website to the right local Ford or Lincoln dealer.

The integration with Stripe’s technology is expected to be rolled out, commencing in North America in the second half of 2022.

Management Weighs In

CEO of Ford Motor Credit Company, Marion Harris, commented, “We are making strategic decisions about where to bring in providers with robust expertise and where to build the differentiated, always-on experiences our customers will value.”

Chief Revenue Officer of Stripe, Mike Clayville, stated, “During the pandemic, people got comfortable paying online for groceries, health care, even home haircut advice from barbers…Now, they expect to be able to buy anything and everything online.”  

Analysts Recommendation

On January 13, Deutsche Bank analyst Emmanuel Rosner increased the price target on Ford to $24 (4.7% downside potential) from $18 and reiterated a Hold rating.

Rosner expects the upcoming Q4 earnings to be “eventful”. However, he expects management outlook for 2022 to be more cautious based on ongoing supply constraints, normalizing vehicle mix, and cost headwinds from commodities, freight, labor and energy.

The rest of the Street is cautiously optimistic about the stock, with a Moderate Buy consensus rating based on 10 Buys, 6 Holds, and 3 Sells. The average Ford price target of $22.50 implies 10.7% downside potential from current levels.

Bloggers Weigh In

According to TipRanks data, financial blogger opinions are 90% Bullish on Ford stock, compared to a sector average of 72%.

Download the TipRanks mobile app now

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights. 

Read full Disclaimer & Disclosure

Related News:
Will Walmart Take the Metaverse Ride?
Amazon Overturns Ban on Visa Credit Cards In the UK
First Republic Bank Shares Drop 4.2% Despite Q4 Beat 

Trending

Name
Price
Price Change
S&P 500
Dow Jones
Nasdaq 100
Bitcoin

Popular Articles