Here's what moved the Google stock price 10% this week, and why it could cut 10% off the value of Telstra

Alex Pollak

Loftus Peak

Here's what moved the Google stock price 10% this week, and why it could cut 10% off the value of Telstra. The Google stock price jumped 10% in the past week, on well-sourced reports (Wall Street Journal) that the company is partnering with the two US mobile phone companies to offer what's known as a mobile virtual network. This is disruption at its finest, and if it works there, it's very bad news for Telstra's largest cash cow, the mobile business, which accounts for 40% of the company's value. But calling it news is an overstatement - Telstra has been aware of this emerging threat for some time. Its problem is that it can't do much about it. Telephony customers are pretty much across Skype, What'sApp, Viber, WeChat and a host of other over-the-top phone services, which effectively convert expensive overseas and mobile calls into virtually free calls. . (VIEW LINK)


CIO of Loftus Peak, a specialist global fund manager with a track record of successful investment in some of the world's fastest-growing listed businesses.

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