Soaring Telecom Stocks Reach 35% Peak
Hittin' the Jackpot: Deutsche Telekom's AI Innovations and US Acquisitions Drive Growth through 2026
Here's a lowdown on why Tim Höttges, CEO of Deutsche Telekom, decided to extend his contract for another two years. The company's growth story ain't close to wrappin' up, and it's still lookin' sweet for investors interested in high price potential today.
Deutsche Telekom, the telecom titan from Bonn, Germany, has been sendin' positive vibes for quite some time now. In 2024, their business figures were solid as a rock. They're hikin' up their dividend to €0.90 per share and launchin' a share buyback program. The future's bright, thanks to product innovations and a strategic shift in the US.
During this year's Mobile World Congress (MWC) in Barcelona, Deutsche Telekom sparked interest with their AI-based technologies on around 1000 sq. meters of magenta-lit space. The AI phone stole the show. With just a fingertap or voice command, you can book a cab, make a res', do real-time translations, ask questions, shop, write emails, make calls, listen to music—all without flippin' between apps. The AI assistant can even handle purchases and play music without interruption.
Deutsche Telekom (WKN: 555750) ## AI-Powered Breakthroughs and US Expansion Ignite Deutsche Telekom Stock
Expect the AI phone to hit store shelves for under a grand starting mid-year. Other potential sales drivers include AI functions in cybersecurity, coverin' mobile dead zones with drones and satellites, and reliable network connections. A good network connection, to customers, matters more than the price tag.
Aside from tech innovations, Deutsche Telekom's got more up its sleeve in the US. In 2021, T-Mobile US, along with financial investor EQT, bought fiber network operator Lumos, and together with KKR, scooped up fiber provider Metronet. This move'll enable the Telekom subsidiary to sell both mobile and fixed connections, offerin' customers bundle deals with a fixed connection and multiple mobile cards. These customers tend to be loooong-term revenue generators. Deutsche Telekom's also aimin' to optimize its ad strategy and open new revenue streams by acquiring ad-tech provider Blis and digital out-of-home advertising specialist Vistar Media.
Analysts forecast that these acquisitions'll wrapped up by 2025. The new US strategy and product innovations are predicted to bump up Deutsche Telekom's revenue and profits by at least 35% by 2026. The current share price offers a solid upside potential.
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Disclosure Notice The majority shareholder and management of publisher Börsenmedien AG, Mr. Bernd Förtsch, owns various financial instruments related to the companies mentioned in this publication. This could potentially benefit from the stock's performance due to the article's publication.
The AI-powered phone from Deutsche Telekom, expected to hit stores by mid-year, could propel their revenue with its various technology features. Furthermore, Deutsche Telekom's strategic acquisitions in the US, such as Lumos and Metronet, are forecasted to drive significant growth in the finance sector, potentially increasing their revenue by at least 35% by 2026.
