TELUS stock analysis: hereâs why it is crashing and what next
TELUS Corporation's stock has fallen to its lowest level since 2017, dropping from $25.6 to $12.6. The company cut dividends and eliminated its DRIP plan to preserve cash, reporting a net loss of $1.83 billion due to a $2.1 billion goodwill impairment in its Digital division. Operating expenses rose 32%, while revenue fell 2%. Management plans to spend $2.6 billion this year. Technical analysis suggests further declines.
How this was made
The 30-second read
Why it matters
The earnings miss and dividend reduction are likely to sustain the stock's downtrend.
Market read
The news reinforces bearish sentiment for TELUS and may trigger sector rotation.
What to watch
Potential asset sales and cost‑cutting measures may stabilize finances.
Background
TELUS Corp (TSX: T) disclosed a Q2 loss driven by a $2.1B goodwill impairment, a 32% expense increase, dividend cut and DRIP elimination, while maintaining high capex spending.
Market effects
Telecom sector may see relative rotation to peers with stronger balance sheets.
Canadian telecom stocks could be pressured.
Limited to North American telecom investors.
Counterpoint
If cash‑flow improves faster than expected, the stock could rebound from oversold levels.
Key entities
- companyTELUS Corp
Canadian telecommunications provider.
