Telefónica leaves Wall Street by the back door: goodbye to almost four decades in the world's largest market

Telefónica is withdrawing its shares from the New York Stock Exchange (NYSE), ending nearly four decades of trading on the major global market. The Spanish telecommunications giant, which began trading on the NYSE in 1987, will cease trading on the exchange in the coming days after filing the necessary paperwork with the Securities and Exchange Commission (SEC). This move signifies a shift in strategy, focusing on cost reduction and streamlining operations. The decision stems from the high administrative costs and regulatory demands associated with maintaining a presence on the NYSE, which no longer offset the benefits. Trading volume in New York has become minimal, and investor interest has waned. Telefónica's stock value has declined significantly over the past fifteen years, and the dividend, once a key attraction for investors, has been repeatedly cut. This move aligns with Telefónica's strategic plan, which emphasizes aggressive cost-cutting measures, led by Marc Murtra. The company has already reduced its presence in various markets, including selling subsidiaries in Latin America and reducing dividends. Investors holding American Depositary Receipts (ADRs) will have the option to exchange them for ordinary shares in Spain or trade them over-the-counter in the U.S. This shift reflects a broader trend of European companies reassessing their presence on U.S. markets.