Rolls-Royce shares bounce back in FTSE 100 following unexpected Trump tariffs impact
Rolls-Royce Shares Soar After April 2025 Tariff Announcement Backlash
Wondering what's happening with Rolls-Royce shares? Well, buckle up, buddy! These posh luxury vehicles may have recovered from the disastrous effects of a tariff announcement back in April 2025.
In a nutshell, the sticker shock of President Trump's trade policies sent the FTSE 100 giant spiraling, with shares plummeting like a stone. But fear not! These babies have bounced back, setting a new trading record.
Back in April 2025, the company's share price took a nasty dive from 779.4p on the 1st of the month to 635.8p by the end of trading on the 7th, leaving a gruesome £10bn hole in its market cap. But what goes down must eventually come up, right?
Rolls-Royce shares were back on the upward trend, surpassing pre-"tariffocalypse" values by late May. In fact, as of this instant, Rolls-Royce shares are fetching about 783p, translating to a market cap of an impressive £66.4bn.
Despite the recovery, we're not quite back to the all-time high of 812.8p achieved in mid-March 2025 yet. But hey, not even a meteor could keep these bad boys down for long!
It's worth noting that, unlike the stock market freefall in the wake of the tariff news, shares in Rolls-Royce never fell below pre-tariff levels. In fact, a significant increase back in late February, inspired by encouraging financial results and a Ukraine defense summit, saw the company's share price skyrocketing from 6062p to 805.2p in no time flat!
So when did the comeback start? The healing began on April 8, with the company's shares regaining ground and breaking the £60bn valuation mark by April 22.
After all the dust settled, Rolls-Royce remained upbeat, projecting a confident outlook for 2025. The company expects an underlying profit of nearly £3bn in 2025, significantly above previous guidance of between £2.7bn and £2.9bn. They're also looking at between £2.7bn and £2.9bn of free cash flow.
In conclusion, Rolls-Royce still faces the ongoing threat of tariffs affecting supply chains and production costs, but the company's strong financials and robust recovery show that it's as resilient as ever. Life's a high-stakes poker game, and Rolls-Royce is ready for another round!
- The Rolls-Royce shares, which previously plummeted due to April 2025 tariff announcement backlash, have soared and set a new trading record.
- In late May, Rolls-Royce shares not only rebounded but also surpassed their pre-"tariffocalypse" values, fetching around 783p at the moment.
- Remarkably, Rolls-Royce shares never dipped below their pre-tariff levels and saw a significant increase in late February, propelled by positive financial results and a Ukraine defense summit.
- Despite the lingering threats of tariffs affecting supply chains and production costs, Rolls-Royce's resilience is apparent in its strong financials and robust recovery.
