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"That AI news is really driving the share price lol"
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What happened to dropping like a stone?
Garrone
Tufan is using his chain saw to cut costs at the expense of maintenance and R&D. All will lead to short term results. Suspend your verdict and judgment as the true results of his actions will only become visible when an accident akin to what Boeing is experiencing now rears its ugly head.
Sentiment is what drives prices unless a listed company has a solid base of majority shareholders. For guidance look at Swisscom, Deutsche Telekom and Orange. Vod is a lot more diverse business with innovative products and service than the aforementioned, but is being punished simply because we have a spineless government who isn't encouraging long-term strategic ownership. The topic has been discussed at lengths on this board. Pension funds are destroying the UK market. Fix that and you will see FTSE100 springing back to life.
PS this board behaves like a stocastic process with no memory (Markov property) as the same topics and questions keep getting repeated
"Thanks Steve but that Microsoft news yesterday is well and truly in the rear view mirror, and after today’s inflation news Vod is going to drop like a stone."
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Jax
You are increasingly reminding of this chap 😅😂
https://youtu.be/d7pioagkX5k?si=VStocxFGCsDt4fnP
Everybody to their own and whatever rocks your boat .
Stealth
"Vodafone will invest $1.5 billion over the next 10 years in cloud and customer-focused AI services developed in conjunction with Microsoft." - This statement doesn't imply msft is getting the 1.5bn investment. Typically in such arrangements there will be a ledger of credit owed to, in this case, vod, based on the services rendered by msft.
Don't forget msft employs over 220k people, of which 80-90% are white collar workers who most likely qualify for a business mobile in addition to fixed line phones. In the 1.5bn, a portion is the credit towards the services offered for free.
Also, don't forget that vod has its in-house large army of engineers and developers which is also baked into this figure and the estimated R&D expense. Already Vod collaborates with Google and Oracle and would not be surprised if they bunch them all together as part of their efforts to lead this segment in business experience automation intelligently. You can't achieve an overarching business automation by maintaining disparate silos. Vod has already come a long way in harmonising their back-office processes and data quality.
Let's crunch some numbers based on a higher and lower band of expected msft spend on vod:
80% white collars--> 176k employees
upper band of average monthly spend per employee->50-->105m/year
Lower band of average monthly spend per employee->20-->42m/year
Over a 10-year period we have the following:
Upper band-->1.05bn
Lower band -->422m
If the truth lies somewhere in the middle, msft spent is ca700m over a 10 year period. I know its a simplistic calculation and would not be surprised if the contract designed to incorporate a min spend of 20/month/employee and the rest as variable to keep the costs down.
Indeed a great update and a great milestone example of why vod is unique in this space. Through IoT, Mpesa and the impressive business services on a global scale, the true impact of the company will be felt by the industry.
Making the IoT services directly available on the azure market place will catapult the business will strengthen the category leadership. Not to mention msft commitment to invest in it.
Let's see how long it will take before people start typing "but what about debt, what about div" lol😂
Https://www.lightreading.com/finance/is-vodafone-looking-to-exit-australia-s-tpg-telecom-
"Vod will go bust imo"
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Such a delightful scientific statement🤓
Best wishes with your investing/trading decisions based on your gut(ter) feeling😅
Jax
Why are you wasting your time here? you should be elsewhere making more money, no? :) If you are a trader, this is not the right share. If you are a shorter, this is equally not the right share.
It feels like you are confident in your abilities to know how you would have guessed the outcome if faced with the Schrodinger's cat dilemma lol
$hitcoin is the biggest scam ever transferring wealth from the haves to not haves.
Dr Varoufakis nailed it: https://www.youtube.com/watch?v=1JGYpDZixlY
Good job fleccy!
RR is riding on pure fluff right now. Sure money was sub 1.00.
Tufan is busy at work stripping the company by cutting costs left and right which will soon show up in quality issues and less happy customers.
PS BP did that with the rigs in gulf of Mexico.
Next stop the resistance at 73.
Finally someone who is echoing what I have been saying for years. Pension funds screwed the FTSE.
https://www.theguardian.com/commentisfree/2023/dec/31/britain-stuck-in-doom-loop-system-rigged-against-growth-that-needs-to-change
Looks like this whisper may have triggered the surge in idea yesterday
https://www.businessworld.in/article/Elon-s-Starlink-Tie-up-Talks-In-Market-Pumps-Vodafone-Idea-To-The-Skies-In-India/29-12-2023-503993/
Clued
What do you mean? Can you elaborate on what you mean by other b.s.? Also, vod idea has 20% market in India. Don't forget and despite the relative low income levels, we are talking about a country with a population of more 1.5bn.
India has a huge potential as long as the Indian government doesn't discriminate against foreign companies and investors, which it has evidently done and not only to vodafone. So at one hand you have a huge potential but simultaneously hampered by thieving officials.
My bet is that Vod will maintain its stake if the Indian government provides the long term guarantees in a binding contract.
Indeed - only this stake is worth ca £2.5bn. Currently it's recorded as nil in the balance sheet.
Nofear
Good article though its insights are for vod ireland only.
If this https://www.businesstimes.com.sg/companies-markets/telcos-media-tech/ck-hutchison-eyes-deals-fast-moving-italian-mobile-market is true, then vod should opt for a merger rather than sale. Total number of players to go from 5 to 3, leading to less cannibalisation.
The issue and concern is if the regulators will approve if 3 is also keen to do what vod is aiming for.
You may need to have a subscription to read this https://www.ft.com/content/b6a53278-60e4-4d93-b691-f575f54b27f0
Based on the recent moves by sovereign wealth funds keen interest in telcos and the blocking by orange, DT and now Telefonica, it seems plausible the beneficiary of external cash pile into the sector on the European side is Vod.
That coupled with the PE FOMO into the same sector bodes well and could signal the multi-year reversal trend.
How times have changed!! https://www.commsupdate.com/articles/2006/12/19/vodafone-sells-swisscom-mobile-stake/ The prey that became the predator. Same cycle will get repeated over and over again in the coming decades.