Deutsche Telekom at 25.20 Euros: A Buyback Can't Mask the Storm Brewing at T-Mobile US
Published on 07/06/2026 at 05:04 | Redaktion boerse-global.de
The German telecom giant's stock closed at 25.20 euros on Friday, extending a run of losses that has wiped more than a quarter of its value from the 52-week peak of 34.35 euros. The slide leaves the shares trading 26.64% below that high and within striking distance of the year's low of 23.54 euros, set on June 30. A third tranche of the company's ambitious buyback programme has been running since July 1, yet the weight of multiple challenges facing its US subsidiary is proving too heavy for the repurchases to shift.
Under the latest tranche, Deutsche Telekom can spend up to 560 million euros buying back as many as 23.5 million of its own shares on Xetra through the end of September. That follows a second tranche between April and June, which saw the group acquire roughly 19.4 million shares for about 543.4 million euros. The overall programme, targeting a total of 2 billion euros by the end of 2026, is designed to shrink the share count and lift earnings per share. So far, however, the pace of buying has barely dented the downtrend.
Much of the pressure stems from operational upheaval at T-Mobile US. The American subsidiary is forcing around 142 million customers off legacy plans onto modern tariffs — a migration aimed at simplifying IT systems and improving margins. Management is promising a five-year price guarantee, but reports indicate many users will face higher costs. At the same time, the carrier plans to shut down its 2G network in early August, freeing up spectrum for more advanced services as it braces for competition from space-based operators.
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Adding to the operational strain is a legal standoff with chipmaker Broadcom. T-Mobile US is pulling thousands of virtual machines from VMware servers after Broadcom, following its acquisition of VMware, cancelled perpetual licenses and standalone support contracts. The software had underpinned T-Mobile's applications since 2008. A temporary restraining order keeps technical support running, but only until early August.
While these internal battles play out, a separate threat is spooking the market. Speculation has swirled, fuelled by a Handelsblatt report, that Deutsche Telekom CEO Timotheus Höttges is exploring a merger of the parent company with T-Mobile US. A small team is reportedly weighing options such as a new holding structure. The driver of these discussions is said to be Elon Musk's SpaceX, which, after its IPO, is preparing to enter the US mobile market. One senior Telekom manager summed up the mood: "Elon Musk makes us worried." Neither Deutsche Telekom nor T-Mobile has commented publicly. Still, the rumour sent the stock tumbling as much as 5.7% on Monday, and T-Mobile US shares slid about 4% at the New York open. Critics question the strategic logic, arguing the consolidation would offer minimal cost savings while risking a lower combined valuation.
Chartists see little reason for optimism. The stock sits 8.49% below its 50-day moving average of 27.54 euros and a steeper 12.43% under the 200-day line at 28.78 euros. The relative strength index stands at 36.9 — not yet in oversold territory, but pointing to persistently weak momentum. With 30-day annualised volatility at 28.92%, traders are bracing for further swings.
The next major event for investors is August 6, when Deutsche Telekom reports second-quarter earnings. By then, the Broadcom support deadline will have passed, and the tariff and network changes at T-Mobile US will be in full effect. The market will be looking for concrete answers on how the group plans to navigate its US headaches — and whether the buyback programme can ever regain the initiative.
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