[ANALYSIS] Why Globe Telecom is a purchase

The market is beginning the yr at the 6,052.92 degree of the Philippine Inventory Alternate index or PSEi.  This place to begin can be the very best the market has achieved in 2025.  

Comparatively, it’s 7.29% decrease than the market’s 2024 buying and selling shut of 6,528.79, rendering 2025 as some of the difficult years the bourse had ever skilled because the pandemic. This additionally ranked the market to be among the many worst performing inventory buying and selling facilities in East and Southeast Asia this yr. (READ: Worth lure: Why the PSE is considered one of world’s worst-performing markets)

However, common web worth turnover for 2025 has improved to P5.91 billion per day from P5.15 billion in 2024.  

In hindsight, a mixture of home points and world financial shifts influenced the market’s poor efficiency. On high among the many home points is the flood management funds scandal. Investor belief and confidence was severely dented by the large extent of corruption within the flood-control initiatives. 

The continuing probes confirmed rampant misuse of billions of pesos allotted for flood administration initiatives, discovery of “ghost” initiatives, rampant use of substandard development supplies and development actions, and the alleged large cornering of contracts by a small group of favored contractors working beneath some political personalities. 

This scandal drove down the market to a five-year low at 5,584.35 on November 14, 2025, the market’s lowest since its 5,570.22 shut on Could 28, 2020. (READ: Worth lure: Why the PSE is considered one of world’s worst-performing markets)

Investor confidence fell additional after GDP grew by solely 4% within the third quarter, the nation’s slowest in additional than 4 years. This additionally introduced down the financial system’s nine-month common to five%, beneath the federal government 5.5-6.5% GDP progress goal for the yr. (READ: [In This Economy] When corruption drowns progress: The PH financial system in 2025)

As famous earlier, international buyers had been likewise persistent web sellers all year long, cashing out resulting from governance issues on the similar time lured by higher-performing regional friends.  

The online outflows of international buyers reached P47.13 billion in 2025, 86.6% increased than their web outflows of P25.25-billion in 2024. 

Contributing additional to the market’s gentle efficiency is the volatility of the Philippine peso. It closed at P58.79 towards the US greenback and hit the all-time low of P59.22.

However in the direction of the tip of final yr, the Philippines was awarded sure tariff exemptions on its agricultural merchandise by the USA, boosting is probabilities for increased financial exercise. 

In November, S&P International gave the nation a BBB+ credit standing on the next issues: the nation’s rising robust financial restoration, efficient fiscal insurance policies, prudent actions by the Bangko Sentral ng Pilipinas (BSP) in protecting inflation low, ongoing reforms (just like the Public-Non-public Partnership or PPP legal guidelines), and strong exterior place, which might doubtlessly work for additional upgrades because the nation continues fiscal consolidation and reduces deficits, with expectations for continued excessive progress regardless of non permanent slowdowns. This score improved the market’s outlook.  

The fee cuts instituted in December by each the BSP and the US Federal Reserve additional helped the market present indicators of stabilization because it recovered from its low. Nevertheless, its rebound was muted ultimately resulting from lingering issues on ”fiscal and political dangers,” as expressed by most market analysts like Mark Angeles, the buying and selling coach of First Metro Sec’s inventory playbook.

Amid the recommendation for a defensive play, this column goes forward with the advice to purchase Globe Telecom (GLO), a inventory choose additionally discovered among the many high 10 shares favored by Angeles and his stockbrokerage home.  

First Philippine Unicorn

Globe Telecom is a perfect funding basically for its robust connectivity providers, excessive dividend yields, and digital progress potential. 

As of late 2025, the corporate has transitioned from a standard telecommunications supplier into an organization with vital pursuits in fintech, healthtech, and different digital options. 

In June 2025, Globe Telecom was acknowledged because the “Most Really useful Telco Model” within the Philippines by SYNERGY/YouGov with its reportedly excessive efficiency in cell video streaming, gaming, and voice apps.

GLO is an outright winner on its 5G community within the following expertise classes: premium perks via its postpaid “Platinum” plans that supply high-end life-style advantages, together with worldwide and native airport lounge entry, 24/7 digital concierge providers, and medical insurance coverage.

Globe’s GFiber plans present high-speed house web (as much as 1.5 Gbps) bundled with leisure subscriptions like Disney+ and 24/7 telehealth consultations by way of KonsultaMD. 

Conversely, Globe Telecom maintains a payout ratio of roughly 70% to 76% of its core web earnings, typically sustaining a dividend yield between 5.42% and 5.8% per yr. 

With its possession in Mynt, the operator of GCash, Globe Telecom additional stands out as an funding goal. GCash is considered “the Philippines’ first US$5 billion Unicorn.” It dominates the cashless fee market with over six million companion retailers. The IPO of GCash will considerably contribute to Globe Telecom’s share valuation upswing.

Globe Telecom has efficiently pursued strategic diversification in different digital ventures just like the telehealth platform KonsultaMD, 917Ventures a company enterprise builder for startups in adtech, e-commerce, and logistics. It has been increasing in information facilities via its partnerships with ST Telemedia International Knowledge Centres and Ayala Company.

Thus far, Globe Telecom stays to be the main cell community operator within the Philippines by subscriber base and market worth.

Globe Telecom is acknowledged for its sustainability practices, holding an “AA” score from MSCI ESG Scores and being a constituent of the FTSE4Good Index for 9 consecutive years. 

Dangers profile and different issues

Globe Telecom faces robust stress from its important rival PLDT, which at the moment leads within the enterprise and glued broadband sectors. Newer gamers like DITO have additionally challenged Globe Telecom’s speeds in some areas.

Some analysts counsel Globe Telecom trades at a valuation premium resulting from its fintech belongings, which might make the inventory value delicate to any adjustments in GCash’s progress trajectory. 

Profitable pivot

Globe Telecom is a compelling funding proposition: it’s a frontrunner within the Philippine telecom trade, with robust model and community and has efficiently pivoted from a standard telco to a tech-driven enterprise, increasing its portfolio past connectivity.

For one, its cell pockets, GCash, is a serious driver of digital monetary providers and income progress.  

In 2024, Globe Telecom achieved file revenues, sustaining robust EBITDA margins via cost-saving initiatives. Its administration has been generously providing a aggressive dividend yield, paying out a good portion of earnings to shareholders.

Lastly, Globe Telecom is predicted to thrive resulting from vital investments in Synthetic Intelligence (AI), the rising want for environment friendly healthcare options, and world sustainability efforts, making it a balanced play for progress and earnings.  

Completely satisfied New Yr! – Rappler.com

(The article has been ready for basic circulation for the studying public and should not be construed as a proposal, or solicitation of a proposal to purchase or promote any securities or monetary devices whether or not referred to herein or in any other case.  Furthermore, the general public must be conscious that the author or any investing events talked about within the column might have a battle of curiosity that would have an effect on the objectivity of their reported or talked about funding exercise.  You could attain the author at densomera@yahoo.com)