AMADEUS

Analysis of Amadeus share price

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If you want to trade on the Spanish Amadeus share price, some preliminary information that will help you to analyse the share. Explore its live stock price and a historical technical analysis of its price as well as complete information on the group's activity.

Elements that can influence the price of this asset:

Analysis N°1

First of all, of course, one has to look at the investments Amadeus has made in research and development in technology. In order to remain a leader in its sector, the group must indeed offer innovative services that meet the needs of its customers.

Analysis N°2

It will of course be necessary to follow the transport sector very closely, particularly air transport. It should be remembered that most of the company's turnover comes from these activities and a crisis such as the one experienced during the pandemic could have negative consequences on its profits.

Analysis N°3

Of course, it is also necessary to take into account the strategic operations implemented by the Amadeus group, such as mergers and acquisitions, strategic partnerships or the creation of joint ventures, which can enable it to boost its activities.

Analysis N°4

The competition in this sector, although weak, is nonetheless important in the context of this fundamental analysis, and you should keep a close eye on the Sabre group, which is Amadeus' most dangerous adversary at the moment. Any news related to the latter can have an impact on the Amadeus share price.

Analysis N°5

Finally, you should of course be interested in the financial reports of the Amadeus group. Amadeus publishes its results every year and every quarter, and it is possible to compare them with analysts' expectations and with the objectives set out in the company's strategic plans.

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General presentation of Amadeus

Let's take a moment to learn more about Amadeus. In order to make a good analysis of this stock, you need to understand how the company works, what its main activities are and how it generates its income. Here is a complete presentation of this company.

Amadeus IT Group SA is a Spanish company that operates in the IT services sector and in the travel sector. Specifically, the company owns and operates the world's leading computerised online travel distribution and booking system.

The system developed by the group allows travel agencies and airline sales offices to make reservations with hotels, car rental agencies and service providers, including shipping companies, tour operators and cruise lines.

In addition to these activities, which generate most of the group's revenues, Amadeus also offers IT services and the marketing of online reservation and data flow management software.

It is also interesting to know the geographical distribution of the Amadeus Group's revenues. Indeed, the group currently generates only 2.6% of its total turnover in Spain. The rest of its turnover comes from the French market (4.7%), the rest of Europe and the Middle East and Africa (38.3%), the United States (29.4%), the rest of America (8.4%) and the Asia Pacific market (16.6%). The rest of the group's turnover comes from other countries and markets around the world and Amadeus is constantly expanding its international presence.

Analysis of Amadeus share price
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The major competitors of Amadeus

In order to have a better view of the environment in which the Amadeus Group evolves, it is important to know its main competitors in its sector of activity. We now propose to discover the main players in this sector in a little more detail.

Sabre

The Sabre group is undoubtedly the most important competitor of Amadeus at the moment. It offers a computerised reservation system, also known as a Global Distribution System or GDS, specialising in the air and rail passenger transport sector, but also in the hotel sector and other services related to tourism. It is thus positioned as one of the leaders in this sector along with Amadeus and Worldspan.

Travelport

Another major competitor to Amedeus is the Travelport Worldwide Ltd group, which specialises in providing distribution, technology and payment solutions to the travel and tourism industry. In terms of turnover, the Travelport Group is smaller than its competitors Amadeus and Sabre Corporation in the GDS segment. However, it has gained market share by acquiring Galileo and Worldspan, which were two other players in this sector. It should be noted here that the Travelport group also offers IT services for airlines, including purchasing, ticketing and departure control.

Orbitz

Another competitor to Amadeus is Orbitz, which operates a travel fare aggregation website and a meta-travel search engine. It is a subsidiary of the Expedia group based in Chicago, Illinois. This company was created through a partnership between several major airlines and then owned by various entities. The group benefited from massive investments from Continental Airlines, Delta Airlines, Northwest Airlines and United Airlines and then American Airlines in order to start this project in 1999. Orbitz was then launched in June 2001.

IndiGo

Finally, the last major competitor of Amadeus is the IndiGo Group, which is an air transport service provider. Its services include passenger-related ancillary services such as service requests, ticket changes or cancellations, excess baggage management, lounge revenues and convenience fees, cargo services, in-flight sales, advertising, insurance products, or tours and packages.


The major partners of Amadeus

Plusgrade

In 2015, a partnership established between Amadeus and Plusgrade allowed passengers to bid on the price of seats aimed at being upgraded or not having a seat-mate.

Zingle

In 2016, the Amadeus group joined forces with the Zingle company to allow hoteliers to send SMS and other instant messages to their customers in order to personalize their relationships as best as possible.

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The factors in favour of a rise in the Amadeus share price:

First of all, let's take a closer look at the rather positive elements regarding this share which reflect the strengths of the Amadeus group:

  • Amadeus is essentially one of the leaders in its sector of activity and was one of the first to offer its technological solution of online booking platforms on its market. As a result, it has a slight advantage over the competition.
  • One of the great assets of the group is also the fact that it has managed to set up numerous strategic partnerships over time. These alliances mainly boosted its expansion but also made it more popular with its prospects due to a strong and solid brand image.
  • Another of the assets is the group's capacity for innovation and its desire to consistently meet the needs of its customers. This pushes the group to improve its products and services to gain loyalty and conquer more prospects.
The factors in favour of a drop in the Amadeus share price:

After learning about the strengths of the Amadeus group, take a look at its main weaknesses. The company also has some weak points which can have a negative influence on the price of its share, here are some tangible examples:

  • First of all, we know that the Amadeus group's activities are closely linked to the growth of certain business sectors such as the civil and commercial aviation sector and the tourism sector in general. Both of these industries are currently experiencing a slight recession.
  • Finally, the group is increasingly facing new competition due to low barriers to entry.
The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions.

Frequently Asked Questions

When was Amadeus floated on the stock market?

In April 2010, Amadeus went public on the Madrid financial market. Following this IPO, the Air France group was a shareholder with a 15% stake. Subsequently, i.e. in 2011, Air France will sell nearly half of its stake for nearly 500 million euros. Today, the main shareholders of Amadeus are British airlines and pension funds.

How has the Amadeus share price evolved in recent years?

It is of course interesting to know the performance achieved by the Amadeus share over the last few years. Thus, we note that the performance of this share has been positive with + 33.57% over five years. Over the last three years, the share price has fallen by 8.75% and over one year, it has fallen by 32.79%. However, we note a return to a positive performance of 18.58% over the last three months in July 2020.

Where is the Amadeus Group stock listed?

The Amadeus share is currently listed on the Bolsa de Madrid in Spain and on the Mercado Continuo. It is therefore listed continuously and during the opening hours of this financial centre. It is also known that this share is included in several major stock market indices, including the IBEX 35, the Eurostoxx 50, the Low Carbon 100 Europe and the Stoxx Spain 20.

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