Porsche stock price has imploded, and moved to a record low as the company goes through one of its worst crises in decades. It slumped to an all-time low of €55.56, down by over 55% from its all-time high, bringing its market cap to over €25 billion. Let’s explore why the Porsche share price has imploded and whether it is safe to buy the dip. 

Donald Trump and his tariffs

The main catalyst for the recent Porsche share price crash is Donald Trump, who has threatened to implement tariffs on European goods. 

These would be big tariffs considering the volume that the two regions do each year. The trade volume is estimated to be $851 billion, with the EU selling products worth $503 billion. Germany is one of the biggest US trading partners.

Porsche is highly exposed to the United States. The last trading update shows that it delivered 310,718 vehicles in 2024, a drop from the 320,220 it delivered a year earlier. 28% of these vehicles went to North America, making it the biggest market in the market. The other biggest region was Europe, China, and Germany. 

While Volkswagen Group has manufacturing plants in the United States, Porsche exports all its vehicles to the country. This means that any tariff, especially a big one like 25% would make its vehicles to be highly expensive.

Analysts believe that such tariffs would pressure the company to set up a manufacturing plant in the US, a highly expensive endeavor. 

China, its other big market is going through major changes as local companies like XPeng, Li Auto, and Nio have gained maket share.

Read more: Very bad news for the vulnerable Porsche stock price

Porsche Taycan sales have tanked

The other main reason why the Porsche stock price has crashed is that its entry into the EV industry has not been all that successful. It did that by launching the Taycan brand, which because highly successful initially.

Recently, however, Porsche Taycan’s sales have crashed. It delivered just 20,800 vehicles in 2024, down from over 40,630 a year earlier. It attributed the drop to the slower than planned electric ramp up and product changeover.

The reality, however, is that EV demand has dropped, and customers are afraid of buying a highly depreciative vehicle. It has a 42% depreciation in three years, with some new models going for less than $50,000. 

Weak financial results

Porsche has published weak financial results in the past few quarters. The most recent numbers showed that the third-quarter revenue dropped by 5.2% to €28.6 billion, while its operating profit plunged by 26.7%. 

This slowdown happened even as the Porsche Cayenne sals jumped by 21% during the quarter. This growth was offset by a big drop in other brands like Macan, Taycan, and Panamera.

Analysts anticipate thar Porsche’s earnings will remain under pressure in the coming quarters, especially as the tariff threat and economic growth in key countries plunge. 

Porsche stock price analysis

Porsche stock by TradingView

The daily chart shows that the Porsche share price has been in a strong downward trend in the past few years. It recently plunged below the key support level at €60 and the 50-day moving average. 

Porsche stock price has moved below the descending channel shown in black, a bearish view. Therefore, the downward trend will continue as bears wait for the new Donald Trump tariffs that will hit it hard. Such tariffs may push it to the next support at €50, followed by €45. 

On the positive side, the stock has formed a falling wedge pattern pointing to more gains later this year. 

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The CAC 40 index has risen in the last five straight weeks and is hoverng at its highest level since June 3 last year despite the rising tariff risks. It soared to a high of €8,000 on Friday, up by over 13% from its lowest point in December and and by 120% from its 2020 lows. So, what next for the blue-chip index?

Why the CAC 40 index is rising

The CAC 40 index has jumped as investors rotate back to European stocks. For example, the DAX index has soared to a record high this year, a trend that may continue. 

Similarly, the FTSE MIB index has jumped to €37,055, up by 160% from its lowest point in 2020. The IBEX 35 index, which tracks the biggest companies in Spain, has soared to €12,800, while the broader Stoxx 600 index has moved to €543. 

These indices are soaring as investors rotate from the low-yieldng European bonds to the stock market because of the dovish European Central Bank (ECB). The ECB has slashed interest rates five times, slashing the official cash rate to 3%. 

This, in turn, has pushed bond yields lower, with the ten-year yield moving to 3% from the year-to-date high of 3.50%. The 30-year yield has dropped to 3.6% from a high of 4%. This has made French stocks more attractive since the average dividend yield is about 3%. 

The CAC 40 index has also been boosted by the recent Chinese economic data, which revealed that the economy was doing well. A report showed that China’s GDP expanded by 5.4% in the fourth quarter and hit the 5% target. 

China is an important market for French companies, which do a lot of business there. Some of the most notable firms with large Chinese operations are the likes of LVMH, Pernod Rickard, and Kering. 

Top gainers French stocks

Societe Generale is the best-performing company in the CAC 40 index as it jumped by over 32% this year and by 62% in the last 12 months. This growth happened as the second-biggest bank in France published strong financial results. Its annual revenue soared by 6.7% to €26.7 billion, helped by higher net interest income. The firm paid over €1.7 billion in dividends.

Dassault Systemes stock price has soared by 18% this year, making it the second-best-performer in the CAC 40 index. It has done well as its business continued doing well. Its software revenue rose by 9% in the fourth quarter, bringing its annual revenue figure to €6.21 billion. It expects that its revenue will grow by between 6% and 7% this year. 

BNB Paribas, the biggest bank in France, has also jumped by over 16% this year, making it the the-best-performing stock in the index. Like Societe Generale, the company has done well, helped by the rising net interest income and higher distributions. 

The other top-performing companies in the CAC 40 index this year are Safran, Thales, Credit Agricole, TotalEnergies, Capgemini, and Sanofi. On the other hand, the top laggards in the index are firms like ST Microelectronics, Pernod Ricard, Edenred, and Stellantis.

CAC 40 index analysis

CAC index chart by TradingView

The daily chart shows that the CAC 40 index has been in a strong bull run in the past few months. It recently crossed the important resistance level at €7,800, its highest swing in September last year. This was a notable level since it was the neckline of the slanted double-bottom pattern.

Most importantly, the index has formed a golden cross pattern as the 200-day and 50-day Exponential Moving Averages (EMA) crossed each other. Therefore, the stock will likely keep rising as bulls target the all-time high of €8,255, up by 3.5% from the current level. 

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Adyen share price has risen in the last six straight weeks, moving to its highest level since July 2023. It has jumped by 150% from its lowest level in 2023, giving it a market cap of over €50 billion. So, is the Adyen stock price a good investment ahead of its earnings?

Growing fintech giant

Adyen is one of the biggest fintech companies in Europe. It is a money processing firm that helps companies accept money online and offline. 

Adyen has increased the number of services over the years. For example, it provides financing to some of its customers, allows firms to send global payouts in real time, and issuing physical and virtual cards. 

Adyen’s business has grown rapidly over the years as it signed some of the biggest companies globally to its ecosystem. Some of its top customers are firms like Uber, Mango, eBay, spotify, and McDonalds. These firms handle billions of dollars annually, some of which flows to Adyen. 

Adyen operates in one of the biggest – and competitive – industries globally. For example, it competes with some of the top competitors being the likes of Stripe, Square, Airwallex, WorldPay, and PayPal.

Adyen’s business has continued to do well as it experienced double-digit growth rates. Its net revenue rose by 24% in the first half of the year to €913 million. Having such a growth rate is encouraging for a company that has been in business for almost 20 years. 

The revenue growth happened as the firm processed over €619 billion, with its point-of-sale revenue jumping to €95.6 billion. 

Read more: Adyen share price is rebounding: Is it the best Dutch stock to buy?

Margin growth and earnings ahead

Adyen also continued to expand its margins, with the closely-watched EBITDA margin moving to 46% in the first half of the year, from 43% a year earlier. 

Most of its business growth is because of the growing share of online transactions, customer gains, and robust relationships with its existing customers. 

Additionally, the firm has taken measures to grow its margins through cost reductions. For example, it has focused on reduced hiring, a move it hopes will make it a more profitable company in the future. 

The next key catalyst for the Adyen stock price will be its earnings on February 13. These numbers will be crucial as they will provide more color about its growth and opportunities. 

Analysts expect that its business did well during the fourth quarter. The revenue is expected to come in at €506 million, a 22% increase from the same period last year. Its annual revenue will be almost €2 billion. 

Analysts note that Adyen stock price may keep rising for a while. It has a large market share, is growing its margins, and continues to attract more customers from around the world. The key risk is that the firm is facing substantial competition from other companies. 

Adyen share price analysis

Adyen share price chart by TradingView

The weekly chart shows that the Adyen share price has done well in the past few months. It has moved close to the 50% Fibonacci Retracement level.

The stock has moved above the 50-week moving average. Most importantly, it has formed an inverse head and shoulders chart pattern, a highly popular bullish sign in the market. This pattern has a head, two shoulders, and a neckline. It has recently moved above the upper side of the neckline.

Therefore, the Adyen share price will likely continue rising as bulls target the key resistance point at €2,260, the 23.6% retracement point. A drop below the support at €1,200 will invalidate the bullish view.

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The DAX index has surged to a record high of €21,800 even as the German economy slows and concerns of Donald Trump’s tariffs rise. It has jumped by 50% from its lowest level in 2023, making it one of the top-performing companies this year. Let’s explore some of the top DAX companies to watch this week and the top movers in 2024. 

Top DAX index companies to watch this week

There will be many top movers in the DAX 40 index this week as they publish their financial results. Siemens Energy, one of its top-performers since 2024 will in the spotlight as it publishes its quarterly results on Wednesday. These numbers wil provide more color about the business demand as its recovery continues. 

Siemens will then release its numbers on Thursday. The other big DAX index constituent to watch will be Commerzbank as it releases its results. Analysts are watching its numbers as speculation of a takeover by Unicredit increases. Unicredit has accumulated more shares and its management has not ruled out a complete buyout.

Thyssenkrupp will also release its numbers later this week. This is one of the biggest engineering companies, making products for key sectors like automotive, construction, chemicals, and food and beverages. 

Top DAX performers

The DAX index has surged as most companies rose. Heidelberg Materials, the biggest German manufacturer of building materials like cement, aggregates, asphalt, and ready-mix concrete, has done well as its stock surged by over 21% this year. 

Heidelberg Materials has done well as demand for its business continued growing. Its nine-month revenue rose by 2% to over 15.7 billion, helped by its American business. Analysts expect that its demand will continue doing well this year.

Commerzbank share price has soared by 20% this year and by 52% in the last six months. As mentioned, this growth is mostly because of Unicredit, which has become its biggest investor and hinted of an eventual rebound.

Rheinmetal stock price, which was the best performer in 2024, has continued its momentum. Its stock has soared by 17.8% this year as Donald Trump insists that NATO countries will need to spend about 5% of their GDP on defense. 

The other notable gainers in the DAX index are firms like Infineon, Sartorius, Zalando, SAP, Deutsche Telekom, Siemens Energy, and Daimler Truck Holding. All these firms have soared by over 10% so far this year. 

On the other hand, the top laggards in the DAX index are firms like Qiagen, Symrise, Porsche, and BMW. BMW and Porsche stock price has crashed this year amid concerns about the tariffs from the United States, where they do a lot of business.

DAX index analysis

The DAX index has soared as the European Central Bank maintained a dovish tone by hinting that it would continue cutting rates later this yaer. It has remained above the 50-week moving average.

Further, the Relative Strength Index (RSI) and the MACD indicators have continued rising, a sign that it has momentum. It has also moved to the upper side of the ascending channel after rising in the last seven consecutive weeks. 

Therefore, the index may keep rising as bulls target the key resistance point at 22,000 euros. However, there is a likelihood that it may retreat in the coming weeks as traders target the 50-week Exponential Moving Average at 19,000 euros.

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Ferrari stock price has pulled back in the past few months as some investors question its growth trajectory and demand for its vehicles. RACE has crashed by 10% from its highest level in 2024, meaning that it is in a technical correction. So, is Ferrari a good blue-chip stock to buy?

Ferrari’s business is doing well, but risks remain

Ferrari, the giant luxury vehicle manufacturer, has been one of the best-performing companies in the automobile industry. Its vehicles have seen robust demand, with some of its models, including the F80 supercar and Purosangue SUV being sold out.

This performance is seen in its business growth, as evidenced by the recent financial results. Its revenue rose by 11.8% in 2024 to over €6.67 billion as it shipped 13,752 units during the year.

Ferrari’s third-quarter revenue rose to €1.7 billion as it shipped 3,325 vehicles. Its operating profit jumped to €468 million, while the EBITDA margin moved to 36.7% during the quarter.

The company hopes that its business will continue doing well as some of its models are seeing strong customer demand. 

Wall Street analysts are optimistic about Ferrari and its business. The average revenue estimate for the current quarter revenue is €1.79 billion, representing a 12.8% annual growth rate.  Ferrari’s annual revenue is expected to move to €7.16 billion, a 7.29% annual rate. 

A key challenge, however, is that there are concerns that the company is overproducing is vehicles in a bid to please its shareholders. For example, the firm produced 799 SF90 Stradale and 599 SF90 Spider. 

While all these vehicles sold out, third part-party data shows that prices have crashed in the resale market. Also, there are signs that the 12Cilindri is not selling as expected. 

The secondary market is important because many Ferrari buyers do so because of the perceived value. Its growth may slow over time with some vehicle types seeing substantial depreciation.

Read more: Why Ferrari’s EV strategy is ahead of Ford and GM

Valuation concerns remains

The other top concern is that Ferrari stock price is highly overvalued considering that its revenue growth is slowing. Ferrari has a market valuation of about $80 billion compared to its annual revenue stands about $7 billion and its profit at $1.58 billion. 

These numbers mean that Ferrari has a forward price-to-earnings ratio of 48, much higher than the sector median of 18. Its trailing twelve month (TTM) P/E ratio is 50, also higher than the sector median of 20.

The price-to-earnings-to-growth (PEG) ratio is a crucial number to watch because it considers a company’s growth rate. In this case, Ferrari has a PEG ratio of 2.25, against a sector median of 0.63.

To be clear: Ferrari requires a premium valuation because of its brand, high margins, and its strong balance sheet and returns. However, the company needs to do more to justify this valuation. 

Ferrari stock price analysis

The daily chart shows that the RACE stock has been under pressure in the past few months. On the positive side, it has moved above the 50-day and 200-day Exponential Moving Averages (EMA).

The other positive is that the stock has formed a falling broadening wedge pattern, a popular bullish sign This pattern formed after it surged, meaning that it has formed a bullish flag pattern, a popular positive sign.

Therefore, the stock will likely keep rising as bulls target the all-time high of $497, the highest swing in August last year. This price is about 12% above the current level. A break above that level will point to more gains to $500. A drop below the support at $420 will invalidate the bullish view.

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