The Discussion on the Volkswagen Stock
The comeback of the Volkswagen stock is particularly relevant as VW, being a leading company in the DAX, can set critical impulses for the German automotive market. Here are some points that speak for and against a comeback:
Opportunities for Investors
- Confidence in Oliver Blume’s Strategy: Under Blume’s leadership, the VW Group is pursuing the “Top 10 Program 2025”, aiming for cost reductions and growth by 2030, including the elimination of around 40,000 jobs to improve efficiency.
- Stock Price Development: Since the beginning of the year, the VW stock has performed positively, while competitors like Mercedes and Porsche are in the red, which indicates confidence among investors.
- Diversified Stock Options: Investors can invest in VW preferred and common shares, as well as shares of Porsche AG, Porsche Holding, and Traton.
Challenges and Risks
- Market Challenges: High production and development costs in Europe, as well as a decline in sales in China, can negatively affect stock performance.
- Earnings Collapse and Shareholder Discontent: In 2024, VW reported earnings collapse and losses, which affected investor confidence, although a dividend is planned for 2025.
- Economic Uncertainties: Political decisions such as US tariff policies could adversely affect the automotive market, although the stock price recovered after tariff relaxations.
Forecasts and Future Prospects
EPS Forecasts: The EPS forecasts for 2025 are an average of 20.61 EUR per share, signaling stability. Revenue in the first quarter of 2025 was 77.56 billion EUR, a slight increase compared to the same quarter last year.
Overall, the Volkswagen stock offers both opportunities and risks for investors. While confidence in the strategy and positive stock development are encouraging, market challenges and uncertainties still require close monitoring and analysis.