Deutsche Telekom Buys Back Shares Hand Over Fist, Yet the Stock Keeps Falling
Published on 07/01/2026 at 09:43 | Redaktion boerse-global.de
Deutsche Telekom is pouring up to €560 million into its own stock from today, launching the third tranche of a €2 billion buyback plan. The irony is hard to miss: the shares hit a fresh 52-week low of €23.54 on Tuesday, then closed at €23.80, leaving the year-to-date loss at nearly 15%. The disconnect between management’s confidence and the market’s panic has rarely been wider.
What is spooking investors? Three compounding threats. First, the space race is turning into a nightmare for terrestrial telecoms. SpaceX’s Starlink is making rapid strides in connecting standard smartphones directly via satellite, while Rocket Lab is acquiring Iridium for roughly $8 billion. The implication is clear: dead zones can now be eliminated without a single ground-based mast, undermining the entire economics of traditional network operators. Second, T-Mobile US — the group’s vital American arm — is causing jitters. Rumours of a multibillion-dollar merger have fuelled fears of poor capital allocation and share dilution, while the abrupt shutdown of legacy 3G and 4G tariffs risks customer churn as bills rise by up to $6 a month.
The technical picture looks equally grim. The share price is trading deep below its 50-day moving average of €27.72, and the Relative Strength Index has dived to 20.5 — territory that signals extreme oversold conditions. UBS analyst Polo Tang sees the cascade as partly triggered by short-covering in rival Comcast, but nonetheless maintains a buy rating with a €36.60 price target. He argues the sell-off is overdone, though he admits stabilising news from T-Mobile US is needed to spark a reversal.
Should investors sell immediately? Or is it worth buying Deutsche Telekom?
One potential catalyst sits in Berlin. The government’s new AI Taskforce meets on Thursday, 2 July 2026, with the Digital Ministry aiming to turn Germany into the leading AI nation. That would require heavy investment in network infrastructure, and political circles are pushing for a European package of at least €100 billion. If such funds materialise, they could ease Deutsche Telekom’s huge capital expenditure burden — but that remains a distant hope.
For now, the buyback machine is running at full throttle. After ploughing around €1 billion into its own shares in the first half, the Bonn-based group is now authorised to acquire up to 23.5 million shares on Xetra by the end of September. The goal is to boost earnings per share for remaining holders. Yet the stock has shed 30.39% from its February high and lost 16.98% in the past month alone. The safety net of the buyback looks like a tiny life raft in a stormy sea.
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