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

Telstra is offering customers a two-hour delivery option…

| More on:

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).

group of friends checking facebook on their smartphones

Image source: Getty Images

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 male ASX investor raises his clenched fists in excitement because of rising ASX share prices today.
Broker Notes

Forget CBA shares, Bell Potter says this ASX financial stock could deliver a 75% return

The broker sees potential for major upside and a generous return from this stock.

Read more »

A neon sign says 'Top Ten'.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors had a rough start to the week.

Read more »

Man holding out Australian dollar notes, symbolising dividends.
Share Market News

Charter Hall Retail REIT reveals March 2026 distribution details

Charter Hall Retail REIT has announced a 6.35 cent unfranked quarterly distribution for the March 2026 period.

Read more »

Lion roaring in the wild, symbolising a rising Liontown share price.
Broker Notes

Up 117% in a year, should you still buy Liontown shares now?

A leading analyst delivers his verdict on the soaring Liontown share price.

Read more »

Man drawing an upward line on a bar graph symbolising a rising share price.
Growth Shares

2 ASX shares that I rate as buys today for both growth and dividends!

Here’s why these stocks could make great buys today.

Read more »

Middle age caucasian man smiling confident drinking coffee at home.
Broker Notes

Buy, hold, sell: Bapcor, Challenger, and DroneShield shares

Analysts have given their verdict on these shares this week. Are they bullish, bearish, or something in between?

Read more »

a man in a business suite throws his arms open wide above his head and raises his face with his mouth open in celebration in front of a background of an illuminated board tracking stock market movements.
Broker Notes

These ASX 300 stocks could be top buys offering 25%+ returns according to Bell Potter

The broker thinks the total returns on offer with these shares could be substantial.

Read more »

A silhouette of a soldier flying a drone at sunset.
Broker Notes

The DroneShield share price has soared 266% in a year. Time to take profits?

A leading expert offers his outlook for DroneShield’s surging shares.

Read more »