Jim Cramer: Formula 1 stock at $83 is a terrific buying opportunity

"At $83 and change, I think it's a terrific buying opportunity. The Q4 2025 report, filed February 26, 2026, gave Cramer plenty to work with. For the Formula 1 segment specifically, revenue grew 14% and operating income before depreciation and amortization grew 20%. Those aren't flashy numbers, but they're consistent and contractually underpinned."

"Fan engagement is the real story. Attendance was up 4% year over year, and live viewership jumped 21%. More eyeballs, more leverage over broadcasters and sponsors when contracts come up for renewal. That's the compounding engine here. Zoom out to the full business and the numbers get bigger. Broader revenue grew 23% year over year, and adjusted OIBDA jumped 38%."

"The bearish Reddit narrative is driven by geopolitical fear, not by any deterioration in F1's core business model. The Concorde Agreement is signed with all F1 teams, providing contractual underpinning to revenue streams. F1 operates globally, and geopolitical disruption can force race cancellations or venue changes that hit revenue directly, but sentiment differs from fundamentals."

Liberty Formula One Group's Series C shares have declined from a peak of $109 to approximately $83, representing a 23% pullback. Q4 2025 earnings show Formula 1 segment revenue grew 14% with operating income before depreciation and amortization up 20%. Fan engagement metrics improved significantly, with attendance up 4% and live viewership jumping 21%, providing leverage for future broadcaster and sponsor negotiations. The broader business demonstrates stronger growth, with revenue up 23% year-over-year and adjusted EBITDA up 38%, bolstered by the MotoGP acquisition completed in July 2025. Geopolitical concerns about Middle East races have created bearish sentiment, though these represent sentiment-driven concerns rather than fundamental business deterioration.

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