FRANKFURT (dpa-AFX) - Shares of Auto1 remain in focus on Friday after tumbling by more than a third in February. Marcus Diebel of JPMorgan is the latest analyst to attempt to allay investors' concerns over artificial intelligence (AI). According to Diebel, Auto1 shares have also recently been caught up in the downward spiral affecting auto baskets.
Bears are betting on the possibility of falling new car prices, which could also weigh on Auto1's results. However, Diebel views this—much like unfavorable weather conditions for car purchases—as a temporary headwind. He also notes that Auto1 is shielded from AI-driven competition by its substantial real-world scale: the company moves 800,000 cars annually and refurbishes 100,000 vehicles in-house.
On Monday, analyst James Tate of Goldman Sachs also sought to calm nerves. He considers AI competition—and potentially even Amazon Autos—more of a threat to operators of pure sales platforms. Auto1, by contrast, conducts its core business with dealers, maintains its own vehicle inventory, and operates a logistics network./ag/jha/
