Vodafone (LON: VOD) share price has dropped to historic lows after the firm reported its full-year earnings. On Tuesday, the stock of the multinational telecommunication giant tanked really hard and was trading 7% lower at press time. This marked seven consecutive red days for the stock.
Vodafone shares are currently trading at their lowest level in 21 years. At the time of writing, the stock is changing hands at 83.97p, which is only the second time since 2002. The selling pressure also increased as the FTSE 100 index also fell by 31 points.
Vodafone To Layoff 11,000 Employees
According to the most recent Vodafone news, the company’s underlying cash profit fell by 1.3% in the last fiscal year. This was taken very negatively by the markets who were expecting slightly better results. The underlying cash profit remained $16 billion during the full year ending in March 2023.
However, the revenue still increased 0.3% and remained $50 billion. This increase in revenue can be attributed to the growth in Africa and increased equipment sales. Another major reason of the tanking Vodafone share price is the latest announcement of 11,000 layoffs over the next 3 years.
Vodafone Share Price Might Bounce From Here
Even though the LON: VOD chart shows a very disappointing price action, there’s still a major chance of a technical bounce. The RSI on the daily timeframe appears to have entered the oversold territory along with a bullish divergence developing on Money Flow Index.
Vodafone share price forecast will flip extremely bearish if the stock loses its 81p support. This is a historic support on the chart which goes way back into 2002. This further increases the likelihood of a major bounce from current level.
I’ll keep sharing my updated price outlook on LON: VOD and other UK shares in my free Telegram group, which you’re welcome to join.