Why the Telstra (ASX:TLS) share price is outperforming the ASX 200 today

Telstra is offering customers a two-hour delivery option…

| More on:
group of friends checking facebook on their smartphones

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Telstra Corporation Ltd (ASX: TLS) share price may be trading lower today but it is faring much better than the market as a whole.

At the time of writing, the telco giant's shares are down 0.5% to $3.90.

This compares to a 2.2% decline by the benchmark S&P/ASX 200 Index (ASX: XJO).

Why is the Telstra share price outperforming?

Something that could be supporting the Telstra share price a touch today was news that the company is now offering two-hour deliveries in certain areas of Australia.

According to the media release, the new service, which is offered in partnership with Zoom2u Technologies Ltd (ASX: Z2U), provides Telstra customers with a free two-hour delivery of Apple and Samsung handsets to homes in selected areas of Sydney, Melbourne, and Brisbane.

However, it is worth noting that the service is only being trialled at the moment and may not be a permanent fixture for customers.

Nevertheless, it is being trialled at a very opportune time. With Apple just announcing the iPhone 13 and Samsung launching its flip phone, demand for handsets is increasing.

And if you're impatient when it comes to deliveries like I am, this offering could be what sways you to contract with Telstra ahead of rivals Optus or TPG Telecom Ltd (ASX: TPG).

To take advantage of the offer, customers will need to call a participating store and order their new Apple or Samsung phone. After which, Telstra advises that it will zoom the phone to the customer's home within two hours in eligible metro areas.

Zoom2u shares fall

While the Telstra share price may be performing better than the share market today, the same cannot be said for the Zoom2u share price.

Despite being included in this offering, the company's shares have tumbled 12% to 59 cents on Monday.

Though, this is still almost triple Zoom2u's IPO listing price of 20 cents from earlier this month.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

A young man sits at his desk working on his laptop with a big smile on his face.
Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

Shot of a young businesswoman looking stressed out while working in an office.
Share Fallers

Why Australian Ethical, Northern Minerals, PLS, and Woodside shares are falling today

These shares are ending the week in the red. But why?

Read more »

busy trader on the phone in front of board depicting asx share price risers and fallers
Resources Shares

Brokers issue new price targets on soaring ASX 200 mining shares

ASX 200 mining shares BHP, PLS Group, South32, and many others hit multi-year highs this week.

Read more »

Concept image of a businessman riding a bull on an upwards arrow.
Share Gainers

4 ASX 200 stocks smashing the benchmark this week

Investors have been bidding up these four ASX 200 stocks this week. But why?

Read more »

A man clenches his fists in excitement as gold coins fall from the sky.
Share Gainers

Why Capstone Copper, Catalyst Metals, DroneShield, and Wildcat shares are rising today

These shares are having a strong finish to the week. But why?

Read more »

Person with a handful of Australian dollar notes, symbolising dividends.
Share Market News

Own DTEC or SEMI ETFs? Here's why it's a big day for you

Show us the money!

Read more »

A man holding a cup of coffee puts his thumb up and smiles while at laptop.
Broker Notes

Why Bell Potter just upgraded this smashing ASX 200 stock

After rising over 100% in 12 months, Bell Potter believes there is more to come.

Read more »

A man in his 30s with a clipped beard sits at his laptop on a desk with one finger to the side of his face and his chin resting on his thumb as he looks concerned while staring at his computer screen.
Broker Notes

Buy, hold, sell: Catalyst Metals, NRW, and Paladin Energy shares

Let's see what analysts are saying about these ASX 200 shares.

Read more »