STC Stock Trading: Comprehensive Analytical Overview of Saudi Telecom Giant

Saudi Telecom Company (STC) was established in 1998 as a government entity responsible for providing basic telecommunications services in the Kingdom. Since then, it has grown to become the largest entity in the Saudi telecommunications sector, expanding its services to include mobile phones, landlines, internet services, digital television broadcasting, and cloud computing technologies. Privatization policies and government support for Vision 2030 have enabled the company to undertake strategic expansions both inside and outside the Kingdom. STC stock was listed on the Saudi financial market (Tadawul) as one of the main components of leading indices. Over time, STC has strengthened its position through acquisitions of technology companies, partnerships with major global firms, and investments in digital infrastructure, making it a driver of the national digital economy. STC's importance is also highlighted by its participation in smart city projects and its provision of innovative internet solutions for homes and businesses.

STC stock trading experienced dynamic interactions in the Saudi financial market during 2024 and 2025. At the beginning of 2024, the average stock price hovered around 21-22 Saudi Riyals, and with the acceleration of digital expansions and improved financial performance, the stock recorded its highest close at around 30 Riyals in mid-2025. The company showed a significant increase in revenues and net profits, with revenues reaching approximately 65 billion Riyals in 2024 and continuing to grow in 2025, with annual net profit ranging between 12-14 billion Riyals. The first quarter of 2025 saw net profit exceeding 3.5 billion Riyals. This strong performance directly reflected on the stock's attractiveness to investors and elevated its status among leading stocks in major indices. Additionally, the stock maintained high liquidity levels and active trading volumes. These indicators confirm STC's strength as a key driver of the telecommunications sector in the Kingdom, with a direct impact on investor sentiment and overall market indicators.

Financial indicators are essential tools for analyzing STC stock trading and understanding its market value. The average stock price at the end of 2025 ranged between 26 and 28 Riyals, with the highest close at 30 Riyals. The company had over 8 billion shares, making its market value range between 180 and 200 billion Riyals, placing it among the largest listed companies after Saudi Aramco. The price-to-earnings (P/E) ratio ranged between 8 and 11 times, reflecting the company's stable profitability and moderate growth, a characteristic of mature telecommunications companies. The cash dividend yield was approximately 2.2 Riyals per share in 2024, with a yield percentage of 7-8% of the stock price, attracting investors seeking steady income. The company maintained a regular dividend distribution policy, enhancing investor confidence in its financial stability and ability to achieve sustainable returns.

The telecommunications sector in the Kingdom is one of the most vital and growing sectors, driven by comprehensive digital transformation and Vision 2030. The Kingdom relies on major telecommunications companies like STC to implement digital infrastructure projects and provide advanced services to citizens and businesses. The sector has seen growth in demand for data and internet services, especially with the rise of e-learning and digital commerce. The government focuses on supporting companies through projects like the national broadband network, expanding 5G coverage, and data centers. In this context, STC continues its leading role through significant investments in modern technologies and providing integrated digital solutions. The company is a key reference in developing smart city technologies, propelling the telecommunications sector toward a more technology-connected future.

STC faces strong competition from several local and international companies in the Saudi telecommunications market. Leading competitors include Etihad Etisalat (Mobily), which ranks second in terms of subscribers and service diversity, followed by Zain Saudi Arabia, which has injected new vitality into the market since its entry. Moreover, competition is increasing with the emergence of virtual operators (MVNOs) and the issuance of new 5G licenses, adding to market challenges. STC also faces indirect competition from global companies in the cloud computing and digital technology sector that offer innovative solutions to businesses and governments. Nevertheless, STC remains distinguished by its significant investments in infrastructure and its ability to keep pace with technological changes, providing innovative products and services that meet customer aspirations.

STC has invested heavily in digital transformation, focusing on artificial intelligence, cloud computing, and the Internet of Things. In 2025, the company signed strategic partnerships with global firms to build smart data centers, enhancing its position as a leading provider of artificial intelligence services in the Kingdom. These investments have led to the development of new services that support future growth, such as smart city solutions, IoT platforms, and enterprise cloud computing services. These initiatives allow the company to diversify its income sources and enhance its competitive position amid rapid digital transformations. They also contribute to improving profit margins and increasing added value for shareholders, as investors view these steps optimistically, supporting sustainable growth.

STC stock trading is known for its generous and attractive dividend policy, as the company relies on distributing a significant portion of its annual profits to shareholders. In 2024, cash distributions reached approximately 2.2 Riyals per share, providing a cash yield of about 7-8%. The company is committed to regular semi-annual and quarterly distributions, enhancing investor confidence and supporting stock price stability. The distribution policy is based on financial performance results and board recommendations, considering investment needs and future expansions. Through this policy, STC positions itself as a leading choice for investors seeking stable income and relative stability in financial returns.

STC witnessed several significant developments in 2024 and 2025 that affected its stock. Among the most notable events was the signing of a strategic partnership with 'HUMAIN' to build AI data centers, enhancing its capabilities in modern technologies. The company also announced plans to issue dollar sukuk worth $3 billion to finance infrastructure projects, signaling its strong financial position and ability to expand. On the service front, the company continued to expand 5G network coverage and offer competitive fiber optic solutions. These initiatives reflected positively on the company's financial results, with strong quarterly profits and revenue growth, enhancing the stock's attractiveness in the eyes of investors. These developments affirm STC's ability to maintain its leadership and respond quickly and effectively to market changes.

Despite the stock's strength and the company's robustness, investing in STC stock trading is not without risks. Among the most prominent risks are competitive pressures from new entrants and increasing competition in the 5G and virtual telecommunications sectors. Rapid technological updates may also require the company to inject significant investments to maintain its position. There are also economic risks related to demand fluctuations, consumer spending, and overall economic conditions. Issuing sukuk or increasing debt may impact the stock's profitability in the short term. In this context, investors should stay informed about periodic financial reports and follow sector developments, and it is always advisable to consult licensed professionals before making any investment decisions regarding stocks.

Although STC stock trading belongs to the telecommunications sector, comparing it with stocks from other sectors, such as Hail Cement (symbol 3001), highlights fundamental differences in influencing factors. While STC's stock is affected by technological developments, digital transformation, and the level of investment in infrastructure, Hail Cement's stock is influenced by factors such as energy prices, demand for construction materials, and government policies in the construction sector. Both stocks are listed on Tadawul, but each has its unique dynamics reflecting the nature of the sector it belongs to. This shows that diversification in an investment portfolio requires a deep understanding of the factors affecting each sector and not relying on the performance of a single stock as an indicator for the entire market.

STC stock trading is one of the most liquid stocks in the Saudi market, with millions of shares traded daily. This large trading volume provides flexibility for investors to enter and exit, reflecting market confidence in the company. From a technical analysis perspective, the stock has followed an upward trend in 2024-2025, supported by positive financial results and continuous expansion news. Support and resistance levels were clear around 25 and 30 Riyals, and the stock often reacts to earnings and distribution announcements. Additionally, its inclusion in major indices attracts investment funds and large institutions, contributing to further price stability. Therefore, following the technical analysis of the stock remains an important tool for estimating future market trends.

STC stock trading is a preferred option for many investors seeking long-term investment in the Saudi stock market. This is due to the company's stable profits, its policy of regular dividend distributions, and its leading position in a sector characterized by sustainable growth. With the growing digital transformation in the Kingdom, the company is expected to remain at the forefront of innovation, supporting the sustainability of returns in the long term. However, long-term investment requires continuous monitoring of the company's indicators, evaluating its expansion strategies, and observing developments in the technology sector and competition. It is always advisable to rely on recent financial data and consult financial specialists before making any long-term investment decisions.