Vodafone (LON: VOD) shares are riding a quiet surge. The stock closed at 77.82p, brushing against major resistance near 79.50p as traders position ahead of the company’s July 1 earnings. This latest rally caps a 12.7% rise over the past month, fueled by structural shifts in Vodafone’s portfolio and mounting institutional confidence.
Vodafone-Three Deal Redraws UK Telecom Map
Much of the bullish energy stems from Vodafone’s completed merger with Three UK. The resulting joint venture, VodafoneThree Holdings Limited, now commands the largest mobile network in the UK with 29 million users.
More importantly, it comes with an £11 billion investment roadmap that could reshape 5G coverage over the next decade. For investors, that’s more than just growth, it’s a credible comeback story.
Strategic Divestments, Buybacks, and Insider Confidence
Vodafone’s €8 billion sale of its Italian unit to Swisscom has been well received The company followed it up with a €4 billion buyback, while CFO Luka Mucic personally bought over £250,000 in stock. These are not just numbers they’re signals.
Even a controversial dividend cut to 4.5 cents starting next year didn’t shake market sentiment. On the contrary, the stock gained over 3% on the announcement, suggesting investors are focused on long-term gains, not legacy payouts.
Technical Outlook
Vodafone is now comfortably trading above both its 50-day (73.62p) and 200-day (70.52p) moving averages. A confirmed breakout above 79.50p could open the door to multi-year highs.
With the next earnings report just days away, Vodafone’s stock sits on a tight coil, and any upside surprise could finally spark the breakout bulls have been waiting for.
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