Deutsche Telekom’s Fiber Fortress Fails to Shield Stock from Musk and Merger Headwinds
Published on 07/06/2026 at 08:11 | Redaktion boerse-global.de
The gap between Deutsche Telekom’s operational strength and its stock market performance has rarely been wider. While the former state monopoly cements its dominance in German fiber optic networks and executes a multibillion-euro share buyback, the equity continues to slide under the weight of merger speculation and fears that Elon Musk’s SpaceX could reshape the U.S. mobile landscape.
The shares closed at €25.20 on Friday, shedding 4.22% over the week and 10.16% over the past 30 days. From the 52-week high of €34.35, the stock has fallen 26.64%. A fresh 2026 low of €23.54 was touched on June 30, and the Relative Strength Index now sits at 36.9 — close to oversold territory but not yet there. On a yearly basis, the stock has lost almost 19% of its value.
The buyback machinery, meanwhile, is running at full throttle. The third tranche of the 2026 program kicked off on July 1, with up to €560 million earmarked for purchases on Xetra through September 30. At current prices, that could retire as many as 23.5 million shares. The second tranche, which ran from April to June, saw 19.4 million shares bought back for roughly €543.4 million. The overall program targets €2 billion by the end of 2026, providing a steady institutional buyer in the market. Yet the price refuses to respond.
Should investors sell immediately? Or is it worth buying Deutsche Telekom?
The reason lies in the boardroom and across the Atlantic. Speculation about a possible merger between Deutsche Telekom and its U.S. subsidiary T-Mobile US has been swirling for weeks. According to a Handelsblatt report, CEO Timotheus Höttges has tasked a select team with evaluating scenarios, including a new holding structure. The catalyst is SpaceX: Elon Musk’s company, fresh off its IPO, is reportedly preparing to enter the U.S. mobile business. A senior Telekom manager summed up internal sentiment: “Elon Musk makes us worried.” Neither Deutsche Telekom nor T-Mobile US has confirmed the plans, but the market reacted sharply. The stock plunged as much as 5.7% on Monday, making it one of the worst DAX performers of the week, while T-Mobile US shares slipped over 4% on Wall Street. Skeptics see limited strategic benefit and low cost synergies, warning that a merger could even lower the combined valuation.
On the home front, the picture is more reassuring. Fiber optic rollout across Germany is stalling, with installation costs seven times higher than in Spain. Many alternative network operators are scaling back ambitious expansion plans, exhausted by the expensive infrastructure race. Deutsche Telekom, leveraging its deep pockets, is systematically strengthening its position. The company also has a powerful digital engagement tool: the 2026 FIFA World Cup. Exclusive content on MagentaTV, including a recent interview with JĂĽrgen Klopp, is driving subscriber interest and brand loyalty. The hope is that reduced competition will eventually translate into higher revenue per customer.
Until the next earnings release on August 6, the stock will likely be driven more by headlines on Musk and merger talks than by fundamentals. Technically, the shares trade 8.49% below their 50-day moving average of €27.54 and 12.43% below the 200-day average of €28.78. The annualized 30-day volatility of 28.92% underscores the elevated anxiety. Should support at the June low of €23.54 hold, the current level could offer room for a technical rebound. But with SpaceX looming and the merger story unresolved, the near-term path remains treacherous.
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