Telstra (ASX:TLS) share price climbs amid rumours the telco plans to take on US giants

Man holding phone in front of stocks graphicMan holding phone in front of stocks graphicMan holding phone in front of stocks graphic

The Telstra share price finished in the green today amid speculation it plans to buy a major stake in Fetch TV.

The company’s shares gained 1.56% today and were trading at $3.90 at the market close. In comparison, the  S&P/ASX 200 Index (ASX: XJO) closed 1.2% higher.

Let’s take a look at what might have impacted investor sentiment in the telco today.

Potential new deal

Speculation is mounting Telstra plans to buy a 51% stake in Fetch TV, an independent Australian pay-TV provider offering streaming services via the internet.

According to a report in the Sydney Morning Herald, the telco plans to build a combined platform that can “compete against international companies such as Apple and Google”.

Telstra also holds a 35% stake in pay-TV provider, Foxtel. Fetch TV has coverage in at least 670,000 homes.

Sources told the publication that Telstra and Fetch TV were in advanced talks about a possible deal that could be finalised as soon as the end of March.

Flood assistance

In other news, Telstra has offered $250,000 for communities impacted by the floods in Queensland and New South Wales.

Telstra CEO Andy Penn said in a statement on Friday:

As part of our overall support for flood-affected communities, the Local Flood Grants will provide either cash or technology to the value of up to $10,000 to eligible local organisations.

Our local Telstra teams have been on the ground working around the clock to get communities back online as quickly as possible.

Furthermore, analysts have recently recommended Telstra as a potential dividend share to buy.

As my My Foolish colleague James reported, Morgans predicts a fully franked dividend of 16 cents per share in FY 2022 and FY 2023. The broker has a $4.56 price target on Telstra shares.

Telstra share price ASX recap

The Telstra share price is up 27% over the past 12 months, but shares in the telco have dropped 3% in the past month and are down 6.7% year to date.

For perspective, the benchmark ASX 200 has returned nearly 5% over the past year.

Telstra has a market capitalisation of almost $46 billion based on its current share price.

The post Telstra (ASX:TLS) share price climbs amid rumours the telco plans to take on US giants appeared first on The Motley Fool Australia.

Should you invest $1,000 in Telstra right now?

Before you consider Telstra , you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Telstra wasn’t one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

More reading

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s