Deutsche Telekom’s Stock Stumbles as Buybacks and 6G Plans Battle Merger Jitters

Deutsche Telekom shares fall 14% in 30 days amid T-Mobile US takeover rumors; analysts see overdone selloff, with buybacks and 3.6% yield supporting value.

Deutsche Telekom’s share price has taken a beating over the past month, shedding roughly 14% in 30 days as speculation swirls around a potential full takeover of its US subsidiary, T-Mobile US. The stock closed at €27.61 on Friday, slipping below the closely watched 200-day moving average and bringing the 52-week low of €26.45 into uncomfortably close range. On a weekly basis alone, the decline clocked in at nearly 7%.

Analysts at UBS argue the selloff is overdone. They see no near-term prospect for a complete integration of T-Mobile US, making the negative market reaction inconsistent with fundamentals. Barclays and Deutsche Bank have also maintained their bullish stances, with some viewing the current valuation as a strategic entry point. The stock now trades at a price-to-earnings ratio of roughly 15, while the dividend yield hovers around 3.6% — metrics that suggest the underlying business remains solid.

Management is not sitting idle. The company is actively buying back shares, with the current tranche worth up to €550 million running through the end of June. For the full year, the board has authorized buybacks of up to €2 billion. That steady repurchase activity provides a floor beneath the stock even as merger chatter rattles sentiment.

Beyond the noise, Deutsche Telekom is pushing ahead with technological integration. A newly established “6G Innovation Hub” will focus on developing AI-powered applications for the next-generation mobile standard, deepening ties with T-Mobile US. Separately, the company is expanding its partnership with satellite operator Starlink, offering corporate customers a resilient broadband backup connection via satellite.

On the home front, German telecoms are facing tighter regulation. The Federal Network Agency recently granted consumers the right to demand reduced fees if mobile service falls short of promised standards. Deutsche Telekom points to its 5G coverage of nearly 88% of the country’s land area, which should limit the risk of widespread price reductions.

Two key events will shape the near-term outlook. On Monday, the second round of wage negotiations with the ver.di union kicks off in Siegburg. The union is demanding a 6.6% pay increase for roughly 70,000 employees, and a quick resolution appears unlikely — talks could stretch into late May. Then on Tuesday, April 28, T-Mobile US reports its quarterly results after the US market close. As the subsidiary contributes the lion’s share of group operating profit, those numbers will set the tone for Deutsche Telekom’s own first-quarter report due on May 13.

The company’s fiber-optic expansion continues apace, with 12.6 million households now reachable and a target of at least 25 million by 2030. If the European core business holds up and the US numbers deliver, the current downward drift could find a floor. For now, the stock sits nearly 20% below its yearly high, waiting for a catalyst.