Volkswagen Stock: Slight Rebound Amid Profit Concerns

Volkswagen's stock showed positive momentum on Wednesday, closing at €105.25 on the XETRA exchange with a modest gain of 0.3%. During the trading session, shares reached an intraday high of €106.30. This upward movement comes despite disappointing third-quarter results released in late October, which revealed a significant profit decline. The automotive giant reported earnings per share of just €2.42, dramatically lower than the €7.76 recorded in the same period last year. Revenue also decreased slightly by 0.47% to €78.48 billion. Despite these challenges, market analysts maintain cautious optimism, projecting an average price target of €111.71, suggesting approximately 6% upside potential. For the full year 2024, experts forecast earnings of €22.02 per share, though shareholders should anticipate a reduced dividend of €6.47, down from €9.06 in the previous year.

Chinese Market Challenges Impact Performance

The German automotive industry, including Volkswagen, faces mounting pressure in the Chinese market-a critical international sales territory showing signs of weakness. This troubling trend is particularly evident with Volkswagen's subsidiary Porsche, which experienced a sales collapse of more than 25% in China over the past year. These difficulties exemplify the structural challenges confronting German automakers in Asian markets. Volkswagen's current stock price stands well above its 52-week low of €78.86 recorded in November, yet remains considerably distant from its yearly high of €128.60 reached in April. Investors are eagerly awaiting the next earnings report, scheduled for March 11, 2025.