Why is Mercedes stock dropping?
Mercedes sees profits slump by more than half amid US tariff turmoil. Mercedes-Benz said in an earnings update on Wednesday that its net profit had plummeted from €6. Mercedes-Benz has reported big drops to revenues and profits in the second quarter due to the impact of trade tariffs on its business.Mercedes sees profits slump by more than half amid US tariff turmoil. Brand loyalty tends to soften the blow on German carmakers in times of economic downturns, but the double-whammy of US tariffs and lower Chinese sales has cut into profits. Copyright Copyright 2020 The Associated Press. All rights reserved.The German car manufacturer Mercedes-Benz continues to struggle with a lacklustre auto market and weakening demand. Mercedes-Benz is expected to cut its passenger car business profit expectations for the mid-term, following the market seeing an ongoing decrease in demand, according to reports.
Is Mercedes a good company to invest in?
MBGYY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 7. For comparison, its industry sports an average P/E of 9. Over the last 12 months, MBGYY’s Forward P/E has been as high as 8. The financial health and growth prospects of MBGYY, demonstrate its potential to outperform the market. It currently has a Growth Score of C. Recent price changes and earnings estimate revisions indicate this would be a good stock for momentum investors with a Momentum Score of A.
Is Mercedes in crisis?
The group Mercedes-Benz closed the first half of 2025 with a net profit down by 55,8% to 2,68 billion euros, compared to 6,08 billion in the same period of the previous year. The turnover shows a decline by 8,6%, reaching 66,4 billion euros, from 72,6 billion in 2024. BLEAK OUTLOOK After a 30% slump in earnings in 2024, and 40% in its cars division, this year will see earnings fall even further, Mercedes-Benz said, expecting a rate of return in its car division of just 6-8%.