Briefly –
- Aston Martin’s stock price has plummeted to a new ATL (all-time low).
- The company’s growth shows uncertainty.
- The firm might become a lucrative acquisition target.
The Aston Martin (AML) share price maintained its bearish trend today amidst faded stock demand. The share plummeted to explore new all-time lows at 434p, more than 97% beneath its ATH. AML’s market capitalization plunged to 504 million pounds, substantially lower than when Aston Martin went public.
Why is the Stock Crashing?
Aston Martin Lagonda is among the leading auto brands worldwide. It manufactures iconic vehicles such as Valkyrie, DBS, DB11, and Vintage. Its cars sell for millions, and many recognize them for their appearance in James Bond films.
Aston Martin stock has struggled even with its car demand remaining significantly high. The shares dropped nearly 100% as the firm lost talent consistently. Aston Martin lost multiple CEOs within the last couple of years.
Aston Martin has deviated from other leading luxury brands such as Ferrari. Ferrari is a renowned Italian vehicle company. For now, it enjoys over $30B in market cap. Moreover, its shares doubled within the last five years.
Aston Martin is also battling in F1, with its drivers Lance Stroll and Sebastian Vettel staying at the bottom. The drives have accumulated 16 points only, and the team ranks 8th out of ten. AML’s share price plunge is more severe than automakers such as Toyota, Tesla, Ferrari, and BMW. These shares retreated as investors expected margin compression.
The firm’s growth slowed dramatically, and management revealed expectations of only an 8% volume increase in 2022. It anticipates selling around 6,600 vehicle units. Nevertheless, there are potential triggers that might propel the stock higher.
First and foremost, Aston Martin has a new executive from Ferrari. The new CEO might accelerate the firm’s turnaround. Secondly, the plummeting stock price might make the company an attractive acquisition target.
AML Price Forecast
According to the 24hr chart, AML stock maintained massive bearishness within the last few months. The declines escalated as the share plummeted beneath the crucial 707p support – the descending triangle’s lower line.
Moreover, it moved under the 25 and 50 MAs, whereas the RSI drifted beneath the oversold region. Thus, the share will likely extend downside before recovering in the coming few months.
Editorial credit: Rowan Patrick Photos / shutterstock.com
