Vodafone Group PLC (VOD Stock) falls after surge on recent earnings report

NASDAQ:VOD dipped by 2.33% on Tuesday as the stock pulled back after Monday’s spike.
Vodafone announces Vantage Towers infrastructure IPO is set for early next year.
Vodafone is optimistic about getting back on track as COVID-19 vaccines shine light on the future.

Stocks Reporter FXStreet

NASDAQ:VODA has been in recovery mode over the last couple of months as the technology communications giant has climbed back from its low-point during the COVID-19 pandemic. The stock fell 2.33% on Tuesday after an optimistic earnings report on Monday fueled a small and short-lived rally. At its current price levels of $16.35, the stock is firmly back above its 50-day and 200-day moving averages and a rise in service revenue and overall user numbers had CEO Nick Read very upbeat about Vodafone’s recovery into 2021.

Much of Vodafone’s revenues are directly related to their services and while mobile phone usage and sign-ups were up in the first half of its current fiscal year, roaming charges and services declined sharply due to the decrease in global travel. With travel expected to at least rise, if not return to normal, at some point in 2021, Vodafone and its investors are hopeful this will lead to direct growth in its bottom line. Combined with the capital raised from the planned infrastructure IPO of Vodafone’s Vantage Towers which will be listed on the Frankfurt exchange in Germany, and you can see why there is optimism surrounding the U.K. based telecom titan.

Vodafone stock price

One positive that came from Vodafone’s earnings call was that the company would continue to provide its high-yielding dividend to its investors. In a time where many companies have either lowered or cancelled their dividends altogether, Vodafone’s confidence in paying theirs out is a nice display of confidence that a return to normal is not far off. Vodafone still has a median price target of $22.20 per share which represents a nice 35% upside from its current price levels.

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to Premium Sign In

Author

Stocks Reporter

FXStreet

EUR/USD steadies near 1.1650 ahead of US Nonfarm Payrolls

EUR/USD holds ground after five days of losses, trading around 1.1650 during the Asian hours on Friday. Traders remain cautious ahead of the US Nonfarm Payrolls report, which is expected to offer further insight into labor market conditions and the Federal Reserve’s policy outlook. December NFP is forecast to show job gains of 60,000, down from 64,000 in November.

GBP/USD: Further weakness could challenge 1.3400

GBP/USD remains under unabated selling pressure on Thursday, slipping to fresh three-day lows around 1.3415 in response to further improvement in the sentiment surrounding the Greenback ahead of Friday’s key NFP data.

Gold edges lower as bulls opt to wait for the crucial US NFP report

Gold struggles to capitalize on the previous day's goodish move up from the vicinity of the $4,400 mark and attracts some sellers during the Asian session on Friday as bulls seem reluctant ahead of the US NFP report. The critical US employment details will offer more cues about the Fed's rate-cut path, which, in turn, will influence the US Dollar price dynamics and provide a fresh impetus to the non-yielding bullion. In the meantime, dovish Fed expectations and rising geopolitical tensions might continue to act as a tailwind for the XAU/USD.

XRP slides as institutional and retail demand falters

Ripple (XRP) is trading down for the third consecutive day on Thursday amid escalating volatility in the cyrptocurrency market. After peaking at $2.41 on Tuesday, its highest print since November 14 amid the early-year rally, XRP has quickly ran into aggressive profit-taking.

2026 economic outlook: Clear skies but don’t unfasten your seatbelts yet

Most years fade into the background as soon as a new one starts. Not 2025: a year of epochal shifts, in which the macroeconomy was the dog that did not bark. What to expect in 2026? The shocks of 2025 will not be undone, but neither will they be repeated.

XRP slides as institutional and retail demand falters

Ripple is trading down for the third consecutive day on Thursday amid escalating volatility in the cyrptocurrency market. After peaking at $2.41 on Tuesday, its highest print since November 14 amid the early-year rally, XRP has quickly ran into aggressive profit-taking.