FRANKFURT (dpa-AFX) - Growing doubts about massive investments in artificial intelligence once again weighed on the German stock market on Friday. The DAX recently slipped by 0.11 percent to 24,463 points. Gains recorded since the beginning of the year have now been wiped out.
The MDAX of mid-cap stocks fell by 0.59 percent to 31,249 points. The Eurozone benchmark index, the EuroStoxx 50, was also slightly in the red.
A double-digit drop in Amazon's share price during after-hours US trading demonstrated just how persistent investor concerns about AI remain. The retail giant plans to invest around 200 billion US dollars this year, including in AI, chips, robotics, and satellites. This puts Amazon's investment volume even above that of Google parent Alphabet.
Amazon will initially suffer because investors are highly critical of large investments without concrete revenue success, commented analysts at Goldman Sachs. "The AI investment hangover is turning into a wild stampede," wrote Stephen Innes of SPI Asset Management. Investor sentiment currently appears to be the mirror image of the 2021 boom.
In Frankfurt, Bayer shares were in demand, rising 1.4 percent. Detailed study results for the drug candidate Asundexian are fueling hopes among investors for strong business with the blood thinner. One trader described the results as very positive.
The IT and software sector once again suffered heavy losses. Shares in IT service provider Bechtle plunged more than 7 percent after quarterly figures. Cancom and Nemetschek could not escape the downward pull. SAP shares in the DAX also continued to decline.
Grim news from Stellantis hit the auto sector. The Fiat and Chrysler parent company is reporting losses due to the US electric vehicle policy reversal and is cutting its dividend. Volkswagen, BMW, and Mercedes lost up to more than 2 percent in the DAX.
An upgrade for Renk gave shares in the defense manufacturer a boost. Exane BNP now rates the stock as "Outperform." Renk's shares recently gained 8 percent./ajx/jha/
