TELEFÓNICA

Analysis of Telefónica share price

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Among the major shares on the Spanish stock market are some in the telecommunications sector, such as the Telefónica share, which we are going to present here in more detail. In this page you will find out about the complete activities of this company, as well as its historical technical analysis and other elements such as its live share price.  

Elements that can influence the price of this asset:

Analysis N°1

Telefónica's takeovers in growth markets are important events for its development and expansion and should therefore be closely monitored.

Analysis N°2

We will also keep a close eye on the evolution of the broadband and pay-TV market in Latin America since Telefónica is particularly well established there and could therefore take advantage of this growth to increase its revenues.

Analysis N°3

Of course, any new offer or brand marketed by Telefónica will be an interesting point of entry into the market, especially if the associated communication strategy is effective.

Analysis N°4

With regard to the Telefónica Group's international activities, the exchange rates between the euro and other international currencies should be monitored. This can influence the company's profits and margins abroad.

Analysis N°5

The company's financial results will also be closely monitored to ensure that the growth recorded in recent years continues and does not show any signs of a significant slowdown.

Analysis N°6

Finally, we will of course follow all the communications and publications concerning the regulations of foreign governments which can sometimes hinder the development of Telefónica's activities in these countries.

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General presentation of Telefónica :

The Spanish group Telefónica is the leader in telecommunications in Spain. It offers mainly fixed-line telecommunications services, but also mobile telephony, the provision of communication services and the production and distribution of media content.

Telefónica generates most of its turnover in Spain, but also reaches part of Europe and Latin America.

 

Find out about the competition of the Telefónica share:

The Spanish group Telefónica is the main mobile telephone operator in Spain. Internationally, it ranks third in terms of data. Here you can find the general ranking of the world's mobile telephone operators by data importance. You will be able to find out who the main competitors in this group are and take their results into account in your analyses.

 

The strategic alliances set up by the Telefónica Group :

 

Introduction and listing of the Telefónica share :

Telefónica's share price is currently listed on the Spanish Mercado Continuo and includes the calculation of the Eurostoxx50stock market index.

Over the last ten years, Telefónica's share price has mainly evolved downwards in a long trend despite some volatile micro-movements. However, there was a slight increase from June 2012 to July 2015, which unfortunately resulted in a return to a downward trend.

If you would like to analyse the current and future trends of the Telefonica share, we invite you to carry out your own technical analysis of this value.

 

The advantages and strengths of the Telefónica share as a stock market asset:

Firstly, of course, we can highlight the fact that the Telefónica Group enjoys an interesting position in the mobile services market. Indeed, at a national level, it is one of the leaders in this market with a strong customer base for many years. The group therefore has a rather solid positioning that should last over time.

In addition, Telefónica can also take advantage of its numerous investments in research and development and its payroll of more than 280,000 people to respond effectively to market demand and needs with increasingly innovative and practical products and services. This enables it to face the competition with confidence.

Geographically, the strategy implemented by Telefónica has given it a good opportunity for expansion. The group operates internationally and is present in more than 25 different countries around the world. This strength is all the more interesting as Telefónica is well established in growing markets such as China and America, while maintaining an interesting position in Europe.

Stock market investors and shareholders are also reassured by the company's financial results. Indeed, the group's finances are stable and the results have been showing long term growth for several years now.

Telefónica also owes its reputation among its customers to its very interesting communication strategy. Indeed, the group is counting on its presence as a sponsor in numerous high-profile sporting events to make itself known and gain visibility. In addition to this, Telefónica also invests heavily in advertising on the various media. As a result of all these efforts, the company now enjoys an excellent brand image and strong popularity.

 

The disadvantages and weaknesses of Telefónica shares as a stock market asset :

First of all, the Telefónica group, although it has an interesting presence in China and the rest of the world, seems to have difficulty positioning itself effectively and sustainably in the other emerging markets. In fact, the large competing groups are already well established in these markets and prevent the company from taking a large share of the market.

This brings us to Telefónica's second major weakness, namely competition. In fact, the mobile telephony sector and its services are already saturated by the offers of large competing groups, mainly European and American. The players who compete directly with Telefónica generally benefit from an older presence in the target markets and it is therefore complicated for this company to deal with them.

As you will have understood, and although these two weak points may seem less significant compared to the many strengths mentioned above, they may represent a brake on the group's future growth, which is largely based on its capacity for international expansion. It is therefore essential to take them into account before taking any position on the share price of this asset.

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Trade the Telefónica share!
76.4% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.