Rheinmetall shares plunged more than 20% over the past week, marking a severe correction for the German defense contractor.
The sell-off coincided with double-digit declines across major semiconductor stocks, suggesting that profit-taking is spreading beyond a single sector.
Handelsblatt reported that speculation regarding a potential merger or acquisition involving Rheinmetall added to the uncertainty on Friday, though details remain unconfirmed.
The simultaneous weakness in defense and technology names has intensified debate over whether current valuations are sustainable.
While some market participants view the pullback as a healthy correction after a prolonged rally, others warn that the breadth of the decline points to deeper structural concerns.
Handelsblatt reported that speculation regarding a potential merger or acquisition involving Rheinmetall added to the uncertainty on Friday, though details remain unconfirmed.
The defense giant’s sharp reversal comes after a period of strong performance driven by geopolitical tensions and increased defense spending commitments across Europe.