BUY - rate is expected to increase, i.e. the first currency gains value against the second currency.
SELL - rate is expected to go down, i.e. the first currency is expected to lose value against the second currency.
Daimler AG is the powerhouse of the German auto industry. It is one of the largest makers of luxury cars in the world. It is the top producer of commercial vehicles. The headquarters of the company are located in Stuttgart.
In its current form, the company was born out of the merger of Benz & Cie and Daimler Motoren Gesellschaft, in 1926. Over the years, its name was changed several times. One such change occurred in 1998, when Daimler acquired Chrysler Corporation. In 2007, from DaimlerChrysler, the name was changed back to Daimler.
Daimler is one of the constituents of the Euro Stoxx 50 index. With its roots in Europe, the operation is a truly global one. It currently employs more than 289,000 people all over the world.
In February 2018, Daimler’s market capitalization (the total value of its outstanding shares) was USD 92.68 billion. That is indeed plenty of stock to go around. Scores of institutional and big private investors have found Daimler stock attractive over the years.
Daimler’s biggest shareholders
The biggest shareholders of a company paint a rather accurate picture of the investor-type that finds the stock lucrative and investment-worthy.
In Daimler’s case, the menagerie of top shareholders is a motley one indeed. Kuwait’s Sovereign Savings Fund has held Daimler shares since 1974. Renault/Nissan have secured their share in 2010. The two sides possess 1.5% of Daimler shares each. Li Shufu, the chairman of a Chinese car maker and private investor, holds a massive stake in Daimler as well. Shufu’s stake amounts to some $9 billion (about 9.69% of outstanding Daimler shares). This is well enough to make him the largest single Daimler shareholder.
Daimler’s brands
The company makes vehicles under a large selection of brands.
Mercedes Benz is arguably the top brand of the company. Founded way back in 1886, Mercedes gained notoriety through the creation of the world’s first gasoline-powered vehicle. It is currently known for the luxury vehicles made under this brand.
In addition to cars, Mercedes also sells trucks, buses, coaches and commercial vans.
Freightliner is an American truck manufacturer, currently based in Fort Mill, South Carolina and operating under the name Daimler Trucks North America LLC.
Thomas Built Buses is the largest manufacturer of buses in the US.
Some other Daimler-owned companies/brands are: Maybach, Smart Automobile and Detroit Diesel.
Having started out as a leasing and automotive financing operation, Mercedes-Benz Bank is nowadays a fully-fledged global financial services provider. It is the wholly owned subsidiary of Daimler AG.
What moves the needle on Daimler share price?
Global automotive sales are obviously the main drivers of Daimler’s share value. Since this type of demand is impacted by a myriad of economic factors, it is safe to say that Daimler is dependent on the overall state of the global economy.
In regards to alternative propulsion technologies, Daimler has thus far invested heavily in hybrid and electric propulsion, fuel cells and biofuel. The company is certainly preparing for the apparently inevitable switch from hydrocarbon fuels to renewable/alternative fuels.
BUY - rate is expected to increase, i.e. the first currency gains value against the second currency.
SELL - rate is expected to go down, i.e. the first currency is expected to lose value against the second currency.