Why is the Telefónica share suffering despite Corona?

The share was on February 19, 2020 at 6.51 euro and about a month later at 3.66 euro.

Most companies recovered after a short time and some (such as Amazon, Netflix and Co.) even benefited from the pandemic.

The share is currently at 2.90 euro.

But why? Because Telefonica is a telecommunications company… You would have to benefit from the pandemic.

Netflix and Amazon have benefited from the pandemic because more people than usual used these companies during the quarantine months. Telefonica, on the other hand, delivered very poor numbers and canceled the sale of a subsidiary in South America.

In Germany Telefonica makes a profit with the CO2 network. Even before the pandemic…

Apparently not, otherwise the stock wouldn't go down

Corona means that more people are using Netflix, yes. And Telefónica offers these people Wi-Fi and mobile data, and with more people staying at home, the numbers should increase

Telecommunications companies aren't quite as free as Amazon or Netflix. They are subject to many government regulations.

Now do not know the specific numbers. But knows that Telefonica is a lot active in Latin America. In Germany there was / was financial aid from the state during the pandemic. Not so in the countries of Latin America. Instead, there were / are decrees that contracts can't be terminated if someone does not pay the bill / installment (telephone, electricity, water, rent, loans). The bills / installments are initially only deferred, but whether they will be paid later is in the stars. The people / customers have to get their money back first. Basic service providers, landlords and banks in Latin America in particular now have many unannounced customers who can't / do not have to pay their bills.

Most private households have flat rates. Whether I'm at home or not makes no difference to my phone bill. But if my employer is doing badly and therefore cuts investments, cuts costs and so on, then the telephone provider will notice. Sales to business customers in particular will suffer considerably in these times.

Is it worth investing in Telefónica shares? Or will the stock keep falling in the future?

Telefónica's dividends are 6.3%

I would also like to know. In my portfolio I found that the "safe" investments (utilities, real estate, etc.) were not suitable for a crisis. While the "risky" assets (information technology) have mastered the crisis brilliantly.

Telefonica is big enough to survive a few bad years. If competitors have to give up, they will benefit. As a long-term investment, I therefore consider them interesting. For a short term of e.g. 2 years ago I see it as a purely speculative risk investment.

According to the economic section of the press, the losses are mostly in Spain.