- Summary:
- BT share price snapped its losing streak on Wednesday, but a bearish undercurrent is still in play. What does this mean ahead of earnings?
BT share price returned to the upside on Friday, gaining 0.25 percent to trade at GBX 139.75 at the time of writing. The gains snapped a three-session losing streak, but the stock still has a bearish undercurrent. Its losses in the previous five sessions stood at 2.75 percent at the time of writing. BT share price has been on a downtrend since mid-October, but the forthcoming earnings call could provide an inflection point.
The telecoms giant has had a good run in 2024 with year-to-date gains of 12 percent in the stock market. However, a huge capital expenditure (Capex) on 5G and fibre infrastructure rollout has pilled up its debt, which currently hovers around £20 billion. That doesn’t augur well for a company whose market cap is £13.9 billion. Nonetheless, the company has honoured its debt obligations and maintained its dividend payment, hence keeping its investors happy.
Looking ahead, the company will announce its quarterly earnings a week from now, and the results will inject fresh volatility into the stock price. Meanwhile, CEO Allison Kirkby’s restructuring of the company could have significant implications in the coming months. BT (LSE: BT.A) is reportedly looking to sell its Italian and Irish units. Also, news emerged this week that the company has lined up its financial services subsidiary, Redianz for sale. However, BT has not yet confirmed the news.
BT share price prediction
BT share price pivots at 138.95, and the upside will prevail if action stays above that level. That could see the first barrier encountered at 140.10. However, if the buyers extend their control, it could enable them to break above that level and test 141.20.
On the other hand, moving below 138.95 will signal control by the sellers. With that, the first support could come at 137.65. However, extended downward momentum could break below that level. At that point, the upside narrative will be invalid, and the stock could test the second support at 136.80.
