Short Bets on Deutsche Telekom Collapse Even as Merger Rumors Fuel Volatility
Published on 07/13/2026 at 07:43 | Redaktion boerse-global.de
Investors who had been betting against Deutsche Telekom have thrown in the towel. The number of shorted shares in the U.S.-traded OTC stock (OTCMKTS: DTEGY) tumbled to just 200,804 as of June 30, a 67.5% nosedive from 617,318 shares in mid-June. The short-interest ratio now sits at a wafer-thin 0.1 days, suggesting bearish positioning has all but evaporated. Yet the Frankfurt-listed shares remain entrenched in a longer-term downtrend, and the company’s valuation is caught between an earnings miss and a fresh wave of merger speculation.
The mass exodus of short sellers comes despite second?quarter results that fell short on the bottom line. Earnings per share came in at $0.62, well below the $1.07 analysts had penciled in. Revenue, however, surprised to the upside at $34.97 billion, beating the $33.14 billion consensus. For the full year, management forecasts EPS of $2.54. The mixed picture likely encouraged bears to cover, but the stock’s recovery remains tentative: on the OTC market, DTEGY closed July 10 at $29.83, a gain of $0.95 on the day, with a price?to?earnings ratio of 14.27. Wall Street is cautious, with one buy rating and two holds yielding a consensus "Hold."
In Frankfurt, the shares ended Monday at €26.15, eking out a weekly gain of 2.59%. That modest advance does little to offset deeper losses: the stock is down 7.92% over the past month, 6.17% year?to?date, and a bruising 14.60% over the past twelve months. The gap from the 52?week high of €34.35 touched on February 27 stands at nearly 24%, while the distance from the June 30 low of €23.54 has narrowed to just over 11%.
Volatility tells a story of its own. The annualized 30?day figure has climbed to 31.57%, an unusually elevated level for a blue?chip name. Analysts point to two catalysts: the ongoing reshuffle of T?Mobile US’s top management and, more importantly, the whispers of a potential merger between Deutsche Telekom and its American subsidiary.
Should investors sell immediately? Or is it worth buying Deutsche Telekom?
According to a Handelsblatt report, CEO Timotheus Höttges has tasked a small team with exploring various merger scenarios involving T?Mobile US. The company has declined to comment, but the report has reignited a debate that first surfaced in the spring. Market observers read the recent C?suite changes at T?Mobile US as another layer of uncertainty that could either pave the way for a deal or complicate existing structures. The elevated volatility — rare for a German benchmark stock — reflects this strategic fog.
Technically, the stock is trading below both its 50?day moving average of €27.38 and its 200?day moving average of €28.76, confirming the bearish bias in the medium and long term. The 14?day relative strength index at 48.2 sits in neutral territory, having crept out of oversold territory after the recent bounce.
On the operational front, Deutsche Telekom is trying to shore up customer loyalty with a bundled sports offering. "MegaSport" gives MagentaTV subscribers access to WOW Live Sport, DAZN Unlimited, and MagentaSport for €59 per month — a saving of €19.94 compared with the individual subscriptions. The offer runs until September 30, 2026, after which the price rises to €85. Separately, the company recognized partner Mavenir with a 2026 Partner Award for Best Network Innovation, citing its MeeC initiative that cuts 5G core network energy consumption by up to 65% during low?traffic periods.
Deutsche Telekom at a turning point? This analysis reveals what investors need to know now.
The calendar offers two critical milestones. T?Mobile US reports second?quarter earnings on July 23, with analysts expecting EPS of $2.58 and revenue of $23.00 billion. Deutsche Telekom follows with its own quarterly update on August 6. Because the U.S. arm drives the bulk of group earnings, the T?Mobile print will be the more immediate catalyst for the Frankfurt listing.
For now, the stock is caught between the retreat of short sellers — who see limited downside risk — and the persistent headwinds of a strategic identity crisis and a leadership transition. The low short?interest ratio suggests that even the bears are not certain where the next move will come from.
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