Why is TeamViewer’s Stock Price Falling?
Investing can mess with your head. Studies show that the pain of losing is psychologically twice as powerful as the pleasure of gaining. This is referred to as loss aversion, and it wreaks havoc when managing a portfolio.
If a stock you’re holding drops -30%, here’s how to make some of that pain go away. Put as much capital into the stock as your original purchase, and the loss decreases to -15%. While we can’t explain why, as investors, we all know that this now “feels better.” When a stock keeps falling and falling, there’s a temptation to keep buying and buying. That’s not a bad thing, but it feels bad, especially if the stock keeps sliding slowly over time in a dramatic fashion. And that’s precisely what’s been happening with TeamViewer AG (TMV.DE).
The Slow Slide of TeamViewer Stock Price
People always ask Google “why is stock X falling,” but never “why is stock X rising.” That’s loss aversion on display, and we’re not immune to it. We’ve asked ourselves “why is TeamViewer stock price falling?” a number of times, and so have our subscribers. Whenever a stock starts hitting the skids, here’s what we like to do.
- Assess position damage and establish plan of action – keep buying or wait?
- Revisit original thesis and key metrics
- Evaluate recent news in depth
- Go get high
Let’s start by looking at the damage. Right now, we’re down -36% on our TeamViewer holding with one position size worth of capital invested (rou
