Vodafone shares bearish, but will 5G be a 'game-changer' as predicted?
Vodafone shares are running counter to recent announcements. Despite launching a standalone 5G pilot in the UK and adding new services in Spain, Vodafone shares have dropped 6% since 23 June. What are the reasons behind this?
- Vodafone shares fall 6% in two days.
- Company rolls out 5G pilot in three UK cities.
- Will next-generation technology be a game-changer for Vodafone?
- Ready to trade the Vodafone share price? Open an account today
Shares in Vodafone opened at 125.90p on 25 June. That was down on the 126.80p peak from 24 June and almost 5% lower than the 131.92p it hit on 23 June. This bearish trend continued during early trading on 25 June. Within two hours of the market opening, the Vodafone share price had dropped 1.6% to 123.58p. Overall, shares in the telecommunications company have fallen 6% since Wednesday.
What innovations are Vodafone rolling out?
The drop comes at a time when Vodafone has announced major initiatives in the UK and Spain. After becoming the first mobile network to launch a standalone 5G trial in the UK last year, Vodafone has introduced a second pilot scheme.
The rollout of standalone 5G networks in London, Manchester, and Cardiff will be the company’s first ‘live deployment’ of the technology. Vodafone UK chief network officer Andrea Dona has called it a game-changing move.
Dona said: ‘Delivering 5G standalone for the UK is an important step forward for our customers and our partners. The new features this delivers, such as new levels of reliability, latency and flexibility, are a game-changer’.
Vodafone has also launched a new package in Spain. The converged offer will focus on TV content and include some of the biggest names in entertainment. It will cost €84.99 a month and users will get access to on-demand content from HBO Spain, Amazon Prime Video, National Geographic and a host of other broadcasters. The package, known as Vodafone One Unlimited Plus X2, also contains a TV add-on and internet access.
What could be fuelling investor apathy?
The latest innovations are, by all accounts, positive. However, the Vodafone share price doesn’t reflect that sentiment. The company may still be reeling from a poor earnings report in May. Vodafone shares dropped 9% after its full year earnings report fell short of expectations. Although the company reversed 2019’s losses and made a profit of £416 million in 2020, that was below its target.
The latest slump for Vodafone shares could be linked to an ongoing lack of confidence in recent projections. However, with 5G set to play a major role in transforming mobile networks across Europe, the latest news could be a turning point for the Vodafone share price.
Can 5G innovations reverse bearish trend for Vodafone shares?
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