Here's why the AMP (ASX:AMP) share price is down 4% in a week

AMP shares find themselves in the red again this week.

| More on:
bars showing share price dip

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The AMP Ltd (ASX: AMP) share price has struggled this week and landed itself around 3.5% in the red.

That's behind the return of the broad indices this week, and really just a continuation of the longer-term trend it has been on over the past 12 months.

Let's dive in a little deeper to understand the full picture.

What has led us to this point?

The AMP share price is still reeling the effects of the Royal Commission into Misconduct into Banking, Superannuation and Financial Services Industry, which turned into a 3-year ordeal for the company.

This has undoubtedly plagued AMP shares over the last three years, particularly after AMP admitted wrongdoing in its "fees for no service" policies that the company was found guilty on.

However, ASIC dropped its investigations into AMP's conduct in July this year. Keep in mind that the Royal Commissioner had recommended criminal proceedings in the outcomes of the hearing.

Nonetheless, there's been no recovery for AMP shares from this event. They came off highs of $5.43 back in March of 2018 and have cratered over 81% to currently trade at $1.05.

What else is weighing in?

Alongside this, AMP's series of failed deals with Ares Management Corp over the last 2 years has been a weighting factor in its share price.

Ares sought to acquire AMP back in 2020, before withdrawing from the deal. However, the pair were back at it again in 2021, trying to establish a joint venture (JV) to hold AMP Capital's private markets segment.

The deal would have netted AMP a $1.55 payoff. But as they say, history doesn't repeat itself – it rhymes – and Ares and AMP simply just let the 30-day exclusivity period conclude.

Then there are AMP's demerger plans to form two separate entities – AMP Limited and Private markets. The former will focus on the retail investing crowd, whereas its other business will be a global investment manager.

AMP's decision here aligns with the spate of demergers that have occurred or have been proposed for ASX listed entities over the last 12 months.

Not even a robust FY21 earnings report was enough to reverse the longer-term downtrend AMP shares have been stuck in since the beginning of this year.

There's been no market sensitive information released by the company this week, so the AMP share price is likely decreasing this week as a continuation of the longer-term trend.

AMP share price snapshot

The AMP share price has posted a loss of 33% this year to date, extending the loss over the last 12 months to 33%.

Both of these returns have lagged the S&P/ASX 200 index (ASX: XJO)'s return of 25% over the past year.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the 'five best ASX stocks' for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now...

See The 5 Stocks *Returns as of 30 April 2025

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Fallers

Bored man sitting at his desk with his laptop.
Share Fallers

Why Catalyst Metals, Duratec, Nufarm, and Rio Tinto shares are dropping today

These shares are ending the week in the red. But why?

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why Dexus, Mayne Pharma, Nufarm, and Treasury Wine shares are falling today

These shares are having a tough session on Thursday. But why?

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why James Hardie, Mayne Pharma, Nufarm, and Resimac shares are falling today

These shares are having a tough time on hump day. But why?

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why Kogan, Monash IVF, OFX, and ResMed shares are falling today

Why are these shares taking a tumble today? Let's find out.

Read more »

A young male investor wearing a white business shirt screams in frustration with his hands grasping his hair after ASX 200 shares fell rapidly today and appear to be heading into a stock market crash
Share Fallers

Why Appen, DroneShield, Gentrack, and New Hope shares are dropping today

These shares are starting the week in the red. But why?

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Dexus, Dusk, Fletcher Building, and Paladin Energy shares are falling today

These shares are ending the week in the red. But why?

Read more »

Couple look at a bottle of wine while trying to decide what to buy.
Consumer Staples & Discretionary Shares

Treasury Wine shares: Buy, hold, or sell? Here's Macquarie's take

What is Macquarie forecasting for Treasury Wine shares amid the CEO’s unexpected exit?

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why Newmont, NRW, Peet, and Treasury Wine shares are dropping today

Let's find out why investors are selling down these shares on Thursday.

Read more »