While Atos, the former French IT flagship, is reeling in the stock market in light of its numerous financial difficulties, the volatility of Atos (ATO) stock may bring interesting speculative opportunities for active traders. Since the start of 2024, Atos stock has actually lost almost 60% after suffering many years of losses: – 50% in 2021, – 75.90% in 2022 and -21.77% in 2023. This sharp decline in Atos -the stock could also represent an opportunistic entry in the long term? Discover our analysis of Atos shares on the stock market in 2024.
Atos shares: Atos price on the stock market
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Why is the Atos share falling on the stock market?
For some analysts, Atos’ fraud began with certain choices that were considered unwise under Thierry Breton’s leadership, but also due to the lack of responsiveness of the Atos company to certain new trends, such as the public cloud for example. In addition, Atos’ management has not been strong in recent years. On January 15, 2024, the appointment of Paul Saleh to the position of CEO was the 5th since 2019.
As the Atos Group’s debt accumulates, Atos explains in an update on 5 March 2024 that it will call in an ad hoc agent to assist it in its discussions with its creditors and arrive at a refinancing plan for its debt due to inability to complete a capital increase to support its demerger project.
Atos Share: How To Trade Atos Share Volatility In 2024?
For traders following a (very) short-term trading strategy, such as scalping, day trading or even swing trading, the price movements of the Atos share and its volatility can allow for some interesting operations.
This is even more true with the use of certain derivative products such as Turbos or Warrants, which allow you to benefit from the rise but also the fall in prices. This makes it easier to take advantage of all market conditions and market participants’ reactions to developments in the Atos file. However, due to the leverage, these products are very risky and are not suitable for all types of traders.
To trade Atos shares in the short term, traders should monitor relevant price levels, potential chart pattern formation, trading volume and the order book.
Graphical analysis of the Atos share on the stock market
Bullish scenario for the Atos share: To sustainably maintain its rise, Atos shares need to fill the first bearish gap that occurred on February 5th, then the one that occurred on January 15th. Resistances for monitoring: 3,212 euros, 3,417 euros, 4,509 euros and 5,688 euros.
Bearish scenario for Atos share: Atos’ stock is at an all-time low. Supports to watch: 2,300 euros, 1,990 euros and 1,183 euros.
Atos stock: a speculative investment opportunity to grab in 2024?
As an investor, it is crucial to take a long-term perspective to assess the potential movement of a stock’s price over time, even though it is impossible to predict its future direction over an extended period of time with certainty. With this in mind, investors could consider taking advantage of the recent sharp decline in Atos share prices, which have bottomed out, to enter a position.
The aim would then be to take advantage of a possible recovery that could occur once Atos has overcome the various challenges it faces and implemented its strategy aimed at splitting its activities to focus on promising and more profitable sectors such as data analytics, high performance computing and cyber security. .
But the financial difficulties facing Atos are accumulating and intensifying with significant repayment obligations to many financial institutions by the end of 2025 (between 3 and 4 billion euros) and the proposed spin-off, which will not go ahead. Despite this, the French government appears ready to step in to save the company and keep Atos “under the national fold”.
It therefore seems wise to wait a little longer before taking a position, in order to get more information about the development of Atos’ situation. The publication of Atos’ full-year results for 2023 on 29 February 2024 will also need to be watched closely in the hope of gaining insight into the company’s future direction and considering positives that can support the company’s growth. improvement of the operating margin, compliance with the previously noted annual targets, etc. In any case, a possible position in Atos shares would be highly speculative and reserved for the least risk-averse investors and traders.
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