How can you buy KPN shares?
The Koninklijke KPN NV is a company that provides telecommunication and ICT services, as well as fixed and mobile telecommunications, Internet and television. Investing in KPN is not particularly exciting. But if you do it the right way, you can still achieve good results. Do you want to know how to buy KPN stocks? Or are you looking for the latest stock price of KPN? Then this page is the right place!
Where can you buy KPN stocks?
Do you have a strong belief in the future of KPN? Do you think the company knows how to respond to the latest developments in the market? In that case it might be interesting to buy KPN shares. You buy KPN stocks at an online broker. A good online broker for trading in KPN stocks is eToro. At eToro, you pay no transaction fees when you buy the stock. With the button below you can immediately open a free demo:
How can you actively invest in KPN?
By buying and selling CFD shares in KPN, you can speculate on the latest price movements. At Plus500, you can open a free demo account to try out the possibilities without risk. This method of trading is perfect for responding to short-term fluctuations in the stock price.
When a new takeover candidate emerges for KPN, the share price can fluctuate wildly. You can anticipate on this by actively trading in KPN stocks. Would you like to start trading shares online? Open a free demo account at Plus500 with the button below:
What is the current stock price of KPN?
Before buying KPN shares, it is important to study the latest price developments. Below you can see the price of the CFD stock KPN. Do you want to start investing immediately? In that case, you can use the buy and sell buttons to easily place an order.
KPN stock analysis
- Takeover: KPN was almost taken over by another company several times.
- Threats: what are the main risks of investing in KPN?
- Activities: what is KPN working on?
- Strengths: Why can it be smart to buy KPN shares?
- Risk: what are the main risks of investing in KPN?
What are the activities of KPN?
KPN is primarily known as a company that provides mobile telecommunication and television to consumers. However, this is not the only business they are in. KPN also provides complete telecommunications and ICT solutions to business customers. Worldwide, KPN offers Wholesale network services to other operators.
Until 1998, KPN was still called Koninklijke PTT Nederland NV and before that the Staatsbedrijf der Posterijen, Telegrafie en Telefonie, or PTT for short. Until it was separated from TNT Post in 1998, it included the national postal service.
Over the years, there have been frequent takeover candidates for KPN. Back in 2011, the telecom company of the famous Carlos Slim wanted to take over the shares for €8 per stock. Meanwhile, large groups of people probably regret that this did not happen. The stock price has fallen sharply in the meantime.
However, the rumour is still active. In 2013, for example, the Wall Street Journal brought up the fact that the well-known AT&T might be interested in a takeover. In 2015, both Altice and Orange were mentioned as companies that might be interested in KPN. So far, no takeover has been planned, but when it does happen, it will certainly have an effect on the share price. It is therefore important to take this into account when you want to buy KPN stocks.
KPN’s net profit has fallen sharply in the past 10 years, but why is this the case? Competition from other companies certainly plays a role. There are many parties that offer mobile telecommunication, for example. You can see that the prices of subscriptions are dropping considerably as a result. At the same time, large investments are still needed to keep the network up-to-date. All this makes it increasingly difficult to be profitable.
At the moment, KPN’s focus seems to be mainly on saving costs. The company will have to do this to be able to properly set up the 5G network in the future. More and more data traffic is being used and this requires capacity. Fortunately, technologies are also developing rapidly and KPN can therefore make good use of them. It is important to take these developments into account when you want to invest in KPN shares.
KPN is, of course, more than just a provider of mobile telecommunication. But what exactly does KPN do?
Of course, KPN is active in the provision of telecommunications. The company also has several telecommunication shops. Think for example of Simyo, Hi and Telfort shops that you come across on your favourite shopping street. The company also sells mobile phones through its shops and earns a margin on them.
KPN also offers a subscription for digital television. The company has a large interest in Digitenne and can therefore offer television through KPN. Nowadays, you can also easily receive television on your smartphone. Recently, the company also started working together with Viceland.
KPN also offers ICT services. Large companies like the NS (Dutch Railways) hire KPN as a consultant. KPN can help companies protect their ICT infrastructure.
The price of KPN stocks is determined by the interplay of supply and demand. When there is more demand for the share, its price will generally rise. So whether a share rises or falls ultimately depends on the opinion of the general population. A company that is doing very well financially, but is not popular with the stockholders, can still fall on the stock exchange.
But what could be good reasons to invest in KPN? In this analysis of the KPN share, we will elaborate.
When you buy KPN shares, you invest in a company that possesses a lot of knowledge. KPN has had several setbacks, but so far, it has always managed to survive. These decades of knowledge are in the company and this may lead to good results in the future.
KPN is a company with a green and efficient vision of the future. KPN is also increasingly active in developing smart solutions. Examples include systems that make it possible to see which workstations are free and which are not. These kinds of developments could contribute to a boost of the share price in the future. Do you think KPN can win over investors with this vision? If so, it may be smart to buy KPN shares.
Internet of Things
Another interesting development is the so-called Lo-Ra network. This is a very energy-efficient way of connecting all kinds of objects directly to the internet. By applying this technique, your suitcases at Schiphol Airport, for example, can be tracked extremely well. This kind of innovation and the proper application of big data can make it attractive to buy KPN shares.
Yet, every share certainly has its weaknesses. What should you pay attention to before buying KPN shares?
A huge number of other similar parties have joined. As a result, there is increasing competition to offer the best products at the lowest prices. Before you buy KPN shares, it is therefore important to find out what the competition is doing. Also compare how the shares of the competition are priced. It could well be that it is wiser to buy a rival KPN share.
As mentioned earlier, the chance of a takeover is certainly present. If this were to happen, a great deal of uncertainty follows. Will the foreign party be able to understand the Dutch market, for instance? It is therefore always wise to follow any takeover rumours closely.
Focus on the Netherlands
KPN’s focus is very much on the Netherlands. With the open borders for data traffic, you can now use mobile Internet at comparable rates anywhere in the European Union. This makes it easier for international players such as Vodafone and AT&T to build up a market share in the Netherlands.
There is also less room for economies of scale when the focus is too much on The Netherlands. The focus on a small market can therefore be a threat to KPN’s profitability in the future. One advantage, of course, is that the company can really specialize and focus on the Dutch market. This does give the company unique and very specific knowledge.
KPN came into being in the mid-19th century when the government at the time started to build and operate national telegraphy links. About 20 years after its establishment, the telegraph and postal services were merged. In the beginning, the company was part of the Ministry of Finance and later of the Ministry of Waterways, Trade and Industry.
When the telephone emerged at the end of the 19th century, telephone providers were still fragmented locally. Before the turn of the century, telecommunication was increasingly nationalized, and in 1940, the last local telephone networks were taken over by the government.
The Administratie der Posterijen en Telegrafieën, or P&T for short, was converted into a state enterprise in 1915 and later, in 1928, into Staatsbedrijf der Posterijen, Telegrafie en Telefonie, or PTT. During the Second World War, PTT temporarily became an independent company, but this status was abolished immediately after the war.
In 1989, the PTT was privatized and the name changed to Koninklijke PTT Nederland NV. In 1994, they became listed on the Amsterdam stock exchange and a year later in New York. In 2006, the Dutch State also sold its last shares.
The postal activities were split off into an independent company called TPG in 1998. Since then, KPN has only provided telecommunications, which is why the name was changed to Koninklijke KPN NV.
KPN also owns a number of its own retail shops, such as KPN shops, Primafoon, Hi, Telfort shops and the Business Center.