The factors in favour of a drop in the Allianz share price:
Of course, as you can imagine, Allianz does not only offer advantages regarding stock market investment. Before you start speculating on this action online, you have to know the weak points of this company and be able to use them to your advantage with an adapted strategy. We invite you, to discover some of the flaws of this value and the problems that the German company Allianz could encounter in the years to come here.
First of all, it is important to remember that most of the insurance and financial activities proposed by the company concern the automobile industry, whether destined to particulars or professionals. Also, the company is strongly exposed to the economic health of this market as well as to the strong competition of the sector.
Even if Allianz has a rather positive brand image today, there have also been some controversies concerning the role that the company played during the second world war, a fact that has been slowing down its growth in some countries which were marked by this period and where the most discerning consumers are still skeptic about the entity.
Although Allianz is currently the leader in several sectors in the field of insurance in Germany as well as in the rest of Europe, we should not forget that the competition in this sector of activity is very strong and that other big European companies are also trying to gain notoriety in this market every day. It is therefore essential for the company to show strong competitiveness.
Finally, the slowdown of the company’s growth in recent years has become one of its weak points. Even if the outcome shows a certain stability, the movement of the growth observed since 2011 has a tendency to falter, which creates fear that the share could fall. Investors prefer to turn to shares that count with progression potential and incomes that are higher than that of Allianz. Let’s not forget that the company has historically often published results that have been below the expectations of the consensus, which has caused disappointment on the market and led to greater skepticism about the company.