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

Two smiling work colleagues discuss an investment at their office.
Broker Notes

Bell Potter names 3 sold-off ASX 200 shares to buy today

These shares have fallen heavily and a buying opportunity could have opened up.

Read more »

Winning woman smiles and holds big cup while losing woman looks unhappy with small cup.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a sour end to the trading week this Friday.

Read more »

A bearded man holds both arms up diagonally and points with his index fingers to the sky with a thrilled look on his face.
Broker Notes

Bell Potter just initiated coverage on this exciting ASX All Ords stock with a buy rating

There could be 30%+ upside for investors with this one.

Read more »

Two male ASX 200 analysts stand in an office looking at various computer screens showing share prices.
Share Market News

Buy, hold, sell: Evolution Mining, HomeCo, and Macquarie shares

Morgans has been looking at these shares this week. How does it rate them?

Read more »

Two brokers pointing and analysing a share price.
Bank Shares

Brokers re-rate CBA and ANZ shares after banks stun the market

ANZ shares reached a record $40.95 on Friday while CBA lifted to $179.27 before reversing course.

Read more »

Smiling man working on his laptop.
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 »

Disappointed man with his head on his hand looking at a falling share price his a laptop.
Share Fallers

Why Austal, Cochlear, Nick Scali, and WiseTech shares are tumbling today

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

Read more »

A businesswoman exhales a deep sigh after receiving bad news, and gets on with it.
52-Week Lows

13 ASX 200 shares hit multi-year lows as the market takes a breather

The market is down on Friday after a strong week that saw the ASX 200 lift to a 14-week high…

Read more »