It’s a question of when, not if, the market for Bac stock will take a dive.
The company has already fallen almost 30 per cent since the stock was floated last year, with some analysts now forecasting a drop of 60 per cent by the end of the year.
Bac has fallen as much as 45 per cent this year.
Bac shares have fallen about 10 per cent in the last year alone, but are still trading at over $US4.5 billion.
In a statement, Bac said it would focus on reducing its reliance on a global distribution network, which includes its global business model.
“In addition to our traditional focus on delivering value, we have also taken a significant focus on digital distribution to improve our digital portfolio and enable us to deliver more value to our customers, partners and shareholders,” the statement said.
Investors and analysts have raised concerns that Bac could lose its ability to access international markets due to the company’s reliance on local distributors.
Some analysts have even suggested Bac could be unable to maintain its current level of capital investment until the company can regain its ability and profitability.
In its statement, the company said it was continuing to work with its distribution partners to ensure Bac was operating in a sustainable and sustainable way.