Wirecard Stock Price: WDI falls 66% after billions vanish, yet bankrupt Hertz suggest buyers may appear
|- Wirecard AG is trading below €36, down some 66% off its previous closing price of €104.50.
- An auditor said he failed to find billions in missing cash.
- The German payment firm may attract bargain-seekers amid these prices.
Wirecard AG, trading under ETR: WDI is in trouble. An auditor was unable to find billions in missing cash from the payment firm that became a hit among investors. Marcus Braun, the company's CEO, promised to clarify matters as soon as possible, and also tried to calm investors by saying:
It is currently unclear whether fraudulent transactions to the detriment of Wirecard AG have occurred
Investors in Wirecard have already been worrying as the firm postponed its 2019 financial statements over and over again.
At current prices, Robinhood investors may find the stock attractive – or at least oversold. A fall of two-thirds makes the stock oversold on most charts.
On the other hand, those who have been bearish on Wirecard may feel vindicated. Wolfgang Donie had set a forecast of €20, down from €80, suggesting the rout is far from over. The NordLB analyst is no less than an existential crisis.
Returning to the previous argument, a more known company suffering an existential crisis – Hertz, which filed for Chapter 11 bankruptcy – anything is possible with stocks these days. The car rental company issued new shares alongside a warning they could be worthless – and they found buyers.
Will that happen for WDI?
WDI quote
Wirecard AG is trading at the lowest levels since 2016 and when it hovered above the €30 level.ETR: WDI hit a 52-week of €159 and neared €200 in its heyday in 2018. While such a surge is unlikely, it may find buyers at some point.
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