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AG
Alfred Gray
@alfredgray · Sep 21

Mercedes shares fall 8% on lower profit outlook

- Profit outlook cut: Mercedes $MBG.DE expects significantly lower pre-tax profit compared to the previous year.

- Weak demand in China: The Chinese market, a key market for Mercedes, saw a decline, which negatively impacted the outlook.

- Trade tensions: Rising tensions between the EU, the US and China are increasing pressure on European carmakers.

- Stock Decline:$MBG.DE shares fell 8% following news of weaker demand and poorer financial results.

- Entire automotive sector affected: Weaker Chinese demand and trade disputes are negatively impacting the entire automotive industry in Europe.

What do you think about investing in this sector at the moment?

A community member's personal view, not investment advice. Community Guidelines

CB
Clive Bennett @_clivy Sep 25

An 8% drop in the stock is quite a lot. Well, the car companies aren't doing so well right now, so I won't be buying.

BC
Bill Combs @billcombs Sep 25

It's not a bad car company, but I don't want their stock in my portfolio.

MS
Malcolm Stokes @stokes_malky Sep 25

Mercedes is not a bad car company, but I prefer other and better car companies.

TM
Trevor Mills @trev_mills Sep 25

It could be an interesting opportunity to establish a position now.

CB
Clive Bennett @_clivy Sep 25

It's a big drop, but the stock isn't up that much and the results aren't great either.

NT
Nigel Thornton @_thornton Sep 25

This sector is very unstable right now, especially in Europe. I stay away from it.

WJ
William Johnson @willjohn Sep 23

I would not invest in this sector now. I have a few shares of $BMW.DE and I'm going to hold them. Anyway, I find it hilarious that a few years back Mercedes wanted to make only electric cars by 2030 and now they have started investing billions of euros in the development of internal combustion engines. Overall the switch to majority electric car production has caught up with the car companies pretty hard. On the other hand, I like the strategy of $TYT.L and $HMC for example, which are more focused on hybrid production.

AG
Alfred Gray @alfredgray Sep 23

I can agree with you to the maximum and you have described it on a very good case, I own and hold BMW shares as well, it is their stance on electromobility (of which I will admit straight away that I am not a fan) that has convinced me, unlike Mercedes, who have actually deprived themselves of the potential development of internal combustion engines with this decision and will have to make up for this loss. I see these Japanese car companies a bit separately, but they have their clientele and from my point of view they work very well see their popular hybrid car models.

AA
Ashraf Aboudar @ashraf_dd Sep 22

I personally don't like this sector very much. Lately the car market has become quite crowded and not many people are buying our cars. The problems of the individual large factories and companies don't tell a different story.

AG
Alfred Gray @alfredgray Sep 22

I personally have only bought BMW shares, but that is rather sporadically, I see it quite similarly, see the current case of the VW group.

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