Luxury conglomerate LVMH faces potential demise?
Is LVMH a Worthy Investment Amidst Its Staggering Drop?
Ever since its record-breaking high in 2023, LVMH's stock has taken a nosedive, leaving investors concerned about the company's future prospects. As of this June, the stock is teetering around the brink, nearing its 52-week low. Is now the perfect time to seize the opportunity or should we tread cautiously?
The dip in LVMH's stock market value has been remarkable. After hitting an all-time high in April 2023, the company's shares have plummeted, with the OTC market (LVMUY) sitting at around $106.12 - a significant drop from its 52-week high of $159.97. Just recently, the stock price plummeted to a new 52-week low of about $103.90, signaling persistent downward pressure on the market.
Over the last fortnight, the stock has lost approximately 3.7%, with an increased volume on declining prices, which indicates potential risks in the short term. This trend continues to echo on the European market, with LVMH shares tumbling by nearly 0.6% on June 20, 2025, and down roughly 4.5% over the past 10 days.
Technical analysis paints a grim picture, suggesting a bearish short-term trend for LVMH. Experts predict a potential further decline of around 13.9% over the next three months, with a likely price range between approximately $79.88 and $93.03 if the current trend continues. However, if the stock price manages to stabilize or even rebound from the current levels, the outlook may take a more optimistic turn.
Institutional sentiment has been similarly unenthusiastic, with Morgan Stanley recently downgrading its price target on LVMH stock from EUR 560 to EUR 510, expressing concerns about the stock’s short-term performance.
Taking all of this into account, LVMH's current outlook remains tentative and bearish, with the stock showing signs of weakness and potential room for additional drops. As an investor, it's crucial to monitor the situation closely, hoping for that much-needed sign of stability to improve the overall forecast.
Sources:1. Yahoo Finance2. CNBC3. Reuters4. Forbes5. Bloomberg
In light of LVMH's continued stock decline and the bearish outlook from technical analysis and institutional sentiment, it may be prudent for potential investors to exercise caution when considering finance opportunities in this business sector. However, if one is willing to take on the risks, investigating possible investments in LVMH might present itself as an interesting venture given the potential for a rebound in the stock price.
