6 Jun

How Fiat Chrysler Stock Is Trading in Q2

WRITTEN BY Jitendra Parashar

Fiat Chrysler Automobiles

In 2019, the shares of Italian-American automaker giant Fiat Chrysler Automobiles (FCAU) have been highly volatile. The company started the year on a strong positive note as its stock surged 19.0% in January. However, these gains didn’t last long, as the stock turned negative in February and fell 14.4% in the month. It remained mixed in March. As of yesterday’s closing, Fiat Chrysler has lost 1.6% in the second quarter so far. Now, let’s find out how its recent stock performance looks compared to the performances of other automakers and the broader market.

Broader market and peers

After posting a 13.1% gain in the first quarter, the S&P 500 benchmark has lost its positive momentum in the second quarter. As of yesterday, the index was trading with a minor quarter-to-date loss of 0.3% due to a sharp fall in May.

A recent escalation in the US-China trade war has taken a big toll on investors’ sentiments. In May, the S&P 500 Index fell 6.6%, and nearly all automakers underperformed the market by a wide margin.

Last month, the two largest US automakers, General Motors (GM) and Ford Motor Company (F), fell 14.4% and 8.9%, respectively, and the US-listed shares of Fiat Chrysler tanked 9.3%.

US electric car company Tesla (TSLA) fell 22.4% in May, while Japanese automakers Toyota Motor (TM) and Honda Motor Company (HMC) slipped 4.9% and 11.8%, respectively.

Auto investors fear that the ongoing US-China trade war is likely to further deteriorate auto companies’ profitabilities by increasing their cost burdens due to higher tariffs. This concern triggered a sell-off in auto stocks last month.

Latest articles

CrowdStrike (CRWD) fell 9.5% today to close at $54.52. Analyst Walter Pritchard initiated coverage on CRWD with a “sell” rating and a target price of $43.

Micron (MU) stock was up 4.21% on Friday and closed at $45.10. MU was trading 12.2% below its 52-week high of $51.39 for a market cap of $49.9 billion.

Top utility stocks trended lower and lost 1.3% last week. Broader markets were positive but cautious on trade talk optimism, gaining 0.7% last week.

Analyst Ming-Chi Kuo expects Apple to launch the iPhone SE2 in Q1 2020. Priced at $399, it could help Apple gain traction in India and Southeast Asia.

Disney-owned Hulu plans to introduce video downloads, which Netflix has offered for three years. Disney hopes to narrow Netflix’s competitive advantage.

Ireland’s privacy watchdog has concluded its investigation into Facebook over its compliance with the European Union’s data protection law.