Foreign stocks: “Many signs of a bubble”
The record chase on the international stock markets continues. Tech stocks are in high demand on the Frankfurt Stock Exchange. BYD is also a big topic. And there are two successful IPOs from Spain and Paris.
10 July 2025. FRANKFURT (Börse Frankfurt). The major stock indices in Europe and the US are at all-time highs or close to them. The slump in April only briefly interrupted the stock market rally—it did not end it. However, there are also cautionary voices amid the current euphoria. “The calm after the storm could also be the calm before the storm,” warns Marc Richter. The head of stock order book management at Steubing AG points out that the issues of tariffs and the conflict in the Middle East remain unresolved. In addition, interest rates have fallen less sharply than expected, and rising oil prices and a slowing economy could “hit investor sentiment at any time.”
Much excitement surrounding BYD
Customers on the Frankfurt Stock Exchange are currently showing strong interest in tech stocks again, as Roland Stadler from Baader Bank AG reports. Nvidia (US67066G1040) set new records this week and became the first company ever to exceed the four trillion dollar mark. The top performer on the trading floor in June was the share of Chinese electric car specialist BYD (CNE100000296). “A stock split led to increased sales here,” explains Stadler. The measure tripled the number of shares and reduced the price by two-thirds in mathematical terms – the total value of the position remained unchanged. However, due to the technically complex processing via international custodians, there are delays in booking the new shares into investors' accounts.
Roland Stadler
A critical look at the AI hype
Otherwise, trading on the Frankfurt stock exchanges is heavily dominated by the major American players. Twelve of the top 20 stocks in terms of turnover are from the US, including the entire Magnificent Seven, AMD (US0079031078) and Palantir (US69608A1088). Tech expert Stefan Waldhauser is particularly critical of the ongoing AI hype. “In the race for artificial superintelligence, investors currently seem to be ignoring both economic considerations and the usual valuation metrics.” In his opinion, many companies are valued “extremely highly”: “Palantir with more than 100 times its revenue and Tesla (US88160R1014) with more than 100 times its cash flow despite declining revenue.” Both stocks are therefore at risk of crashing. “Tesla in particular is by no means attractive even after the recent price weakness, but is likely to lose further ground in the coming months.”
Stefan Waldhauser
A look at second-tier tech stocks
According to Waldhauser, the current market phase shows many signs of a bubble. “The question is when this hype will finally enter its disillusionment phase.” The industry expert advises investors to take profits in this sector. Instead, they should “take a look at second-tier tech stocks,” some of which are unfairly considered losers of the AI age and are therefore trading at single-digit cash flow multiples in some cases. Specifically, he mentions the leading telemedicine provider Teladoc (US87918A1051) and the ride-hailing provider Lyft (US55087P1049).
- Waldhauser has recently taken a close look at both stocks, as can be read here: https://www.high-tech-investing.de/post/teladoc-aktie-2025 and https://www.high-tech-investing.de/post/lyft-aktie-freenow.
New companies on the stock market
In the middle of the week, there were two successful IPOs in other European countries, as Richter reports. "The gaming and entertainment company Cirsa (ES0105884011) got off to a successful start on the Madrid stock exchange with a valuation of just under €3 billion and multiple oversubscription. The opening price was €16, one euro above the issue price." The stock was also tradable on the Frankfurt Stock Exchange on the same day. The same applies to Semco Technologies (FR0014010H01), a global supplier of semiconductor and chip components. “The shares were also issued at €15. The first price on Euronext Paris was €23.48, just under 60 percent above the issue price. The offering was also oversubscribed several times here,” explains the trader.
Marc Richter
By Thomas Koch, 10 July 2025, © Deutsche Börse AG
About the Author
Thomas Koch is a CEFA investment analyst, investment specialist for structured products, and certified certificate advisor. Since early 2006, he has been covering capital market events as a freelance journalist.
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