Oh, Tele-Come On! Which Stocks Are Hot in the Telecom World?

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Things are hotting up the world of telecom. Actually, let’s be honest, it’s mid-July, things are hotting up – full stop! We thought we’d take a quick stroll around the tele-cosmos and see what’s going on, hopefully giving you a few tips on where you should be placing those eagle-eyes of yours! Let’s jump in…

V-Oh Dear-Fone

…not to blow our own trumpet, but we’re quite proud of that sub-heading! 

Things are looking a little bit iffy for Vodafone (VOD), right now. It’s not been the best of Julys for the telecom big-boy.

Share price has hit a little bit of a slump of late and, as a result, its top executives have agreed to slash their (probably eye-watering) share bonuses by a fifth, under pressure, and facing a potential investor revolt.

Vodafone’s share price has plunged 30% over the past 12 months, wiping more than £15bn off the company’s stock market table, going from £51bn to £35.7bn. Ouch! 

This comes after a wobbly May saw the company cut its full-year dividend by 40% – for the first time since 1990. Vodafone is usually one of the most generous to its investors, handing over a tasty €4bn to them last year – more than any other in the FTSE 100.

Share price is down a not-so-insignificant 26 points YTD, currently lying around the 130 GBX mark. But – and it’s a big one – with the rollout of 5G around the corner, VOD could represent a very good trading opportunity and may be quite deliciously priced right now. Watch this space.

Verizon Looking Veri-Good in Comparison

By contrast, Vodafone’s competitor, the mammoth US-based conglomerate, Verizon Communications (VZ), has looked rather stable throughout 2019, so far. The company – which bought out Vodafone’s 45% stake in itself for $130bn in 2014 – has seen share price rise by roughly 1.5 USD over the year. Most importantly, it’s done so whilst showing fairly regular volatility – enough to make traders sit up and take notice, at any rate.

You may have read that Verizon has been labeled as the “fastest and best mobile network” in the US, this week. This is owing to a bunch of tests, conducted by RootMetrics by IHS Markit in the first half of 2019, which showed that Verizon was the company to beat when it comes to mobile network speed and reliability.

That’s an awesome feat in its own right, but when you consider the competition (Vodafone, AT&T, Sprint, etc.), it’s pretty incredible that it’s now managed to do it 12 times in a row!

Tasty stats for the comms giant – will it impact share price long term? Keep your eyes peeled.

If you’re looking to invest in either of these companies, there’s no better time or place than now, with us. We offer CFDs on both Vodafone and Verizon stocks and hundreds of other instruments, split between five classes – Forex, Stocks, Indices, Metals, and Energies.

If you don’t have an account, sign up now and see how epic it is to trade with us for yourself!

1 Comment

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