Please ensure Javascript is enabled for purposes of website accessibility

BT Group plc Plummets 19% in Brexit Aftershock

By Daniel Sparks - Jun 24, 2016 at 6:38PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Here's why BT Group investors are concerned the Brexit may impact the information-technology company.

What: Information-technology service company BT Group (BT) plummeted as much as 19.4% on Friday following the United Kingdom of Great Britain's vote to exit the European Union, or a vote being referred to as "Brexit." Shares ended the trading day down 18.2%.

Image source: BT Group.

So what: While Britain banks were hit hard on Friday as global markets face uncertainty about what Brexit means for the British economy, many British-based tech companies with multinational operations were hit hard, too. Investors are concerned that information-technology companies like BT Group could lose their unrestricted access to the EU, and hence make competing with other EU companies difficult.

BT Group is a communications-services company with multinational reach, and many investors may be wondering if the company's information-technology services will be at a disadvantage, or even compromised.

Now what: The implications of the Brexit and how it will impact companies like BT Group are still unclear. Perhaps BT Group will provide a press release detailing how management plans to navigate through this uncertain time.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

BT Group Stock Quote
BT Group
BT

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
317%
 
S&P 500 Returns
112%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/30/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.