Banco BBVA Shares Plunge 3.29% Amid Latin America Challenges

Banco BBVA (BBAR) shares plunged 3.29% today, marking the second consecutive day of decline, with a total drop of 7.62% over the past two days. The share price fell to its lowest level since April 2025, with an intraday decline of 4.19%.

The strategy of buying BBAR shares after they reached a recent low and holding for 1 week showed poor performance over the past 5 years. The annualized return was -0.7%, significantly underperforming the market. This indicates that relying on recent lows as a buying trigger and holding for a short duration is not a viable strategy for BBAR.

On June 16, 2025, the stock price of Banco BBVA experienced a significant decline without any apparent reasons. This sudden drop has raised concerns among investors about the underlying factors that might be influencing the stock's performance. The lack of clear reasons for the decline has led to speculation and uncertainty in the market, with investors closely monitoring the situation for any potential developments.

In recent weeks, Banco BBVA has been facing challenges related to its operations in Latin America. The bank has been dealing with regulatory issues and economic instability in some of the countries where it operates, which has impacted its overall performance. These challenges have contributed to the recent decline in the stock price, as investors become increasingly cautious about the bank's prospects in the region.

Additionally, the bank has been under pressure due to its exposure to the real estate market. The recent slowdown in the real estate sector has affected Banco BBVA's loan portfolio, leading to concerns about potential defaults and non-performing loans. This has further weighed on the stock price, as investors worry about the bank's ability to manage its risks effectively.

Despite these challenges, Banco BBVA has been taking steps to address the issues and improve its financial position. The bank has been implementing cost-cutting measures and focusing on its core businesses to enhance its profitability. However, these efforts may take time to yield results, and investors remain cautious about the bank's outlook.