BT Group has remained a dominant name in the field of broadband communications technology. As the statistics show, they have been making several headlines in this sector. But, recently, things have not gone according to plan for the broadband giant. BT Groups market share has taken a hit and slumped. Other players in the broadband industry are beginning to have their way, which has threatened BT Group's position as one of the most formidable forces in this regard.
What has been happening behind the scene? What was responsible for the slump in share price? These and many more will be discussed in the article.
A Powerful Rivalry
Time has shown that no company in the broadband business can stand up to BT Group. They have not only outsmarted their competitors but has also flawlessly done that. However, the competing companies seem to have found a solution that could help bring BT Group's dominance to an abrupt end.
Some rivals are now coming together to form partnerships that will increase their chances of succeeding in the market. For instance, it has been reported that Sky has been working out plans to partner with Virgin Media O2. Analysts have said the new partnership will provide millions of people with a more efficient connection. It is great news for users or customers, but it will spell doom for BT Group shortly.
BT Group's Legal Battle
Things are not going as planned for BT Group at the moment. Although other players in the industry are partnering to see how they can overcome their dominance, BTs earnings are also being reduced due to other factors. One of the other factors includes their ongoing legal battle.
BT Group is currently going through a six hundred million pound trial related to over-charging. You can easily tell the consequences of adding this to the present negative sentiment hovering around BT market influence. This ongoing legal battle has what it takes to negatively affect how much profit they make.
Analysing BT Group Share Price
After hitting an all-time high of 205p sometime in June, BT market share has continued on a free-fall. It has kept falling since then. The most recent slump in price forced the share to dip below 150p, marking the lowest BT has ever gone since around March.
That said, it has not been all gloomy for BT Group in 2021. They equally had some good moments in the year. A good example was when the share price doubled soon after more investors came onto the scene. Patrick acquired over 12% of BT Group's stock. This single buying move helped shares rise to about two pounds.
Unfortunately, BT Group's price came crashing down like the Twin Towers when the purchase ended. The share slid by a whopping 25% and continued that way because there was nothing to boost its stock. Experts warn that the stock has been oversold and may be due for a rebound.
Forecast For BT Group Share Price
As a potential investor, it is wise to know if BT's share price will be positive. The future seems bright, and many brokers believe that the share is worth over 200p. Another group has pegged the price at 180p, and others have said it will slide down further to 100p.
In all of these, you can see that the predictions vary widely. That means you can bank on any analysis or predictions as a short-term trader.
Final Words On BT Group Share Price Slumps
BT Group has been a force to be reckoned with in the broadband industry. They have done magnificently well. But the current BT share price shows it is contending with many issues. The issues are reflecting negatively on its share price.