Wednesday, 17 August 2022 Reading time : 2 minutes

Hard times for tech stocks
American technology stocks have had a difficult year. Most growth stocks and many of the established corporate stocks within the volatile tech sector have suffered major price declines at times, for a variety of reasons. Inflation, supply issues and slowing economic growth are among the factors pushing prices down.

Some companies have been able to defy the more difficult conditions, one of them being the American mobile communications group T-Mobile. Compared to its main rivals Verizon (-12% YTD) and AT&T (0% YTD), the telecom company's stock is up over 26% year-to-date - not only impressive when compared within the sector, but also a strong performance across industries.

Market position significantly improved
Aggressive pricing of plans is driving subscriber growth and thus market share, while the strategic merger with the rival Sprint has greatly improved 5G coverage. While the merger contributed to a net loss last quarter, the company said costs associated with the merger should drop significantly by the end of Q4. As a result, the telecom group's profitability should increase going forward - especially if the number of mobile and internet customers continues to rise. The analyst consensus results in a buy rating.

Reverse Convertible on T-Mobile

• USD: 8% Coupon p.a.
• Strike at 90%
• 12 month maturity
• Valor 116 435 285

Subscription deadline: September 1st, 2022, 4:00 p.m.

 

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