Accenture Stock Rallies After Market On Global AI Joint Venture With Telstra, But Retail Expresses Caution
The joint venture, in which Accenture will hold a 60% stake and Telstra 40%, will be responsible for building a modernized data and AI ecosystem. While Accenture will have the majority share, Telstra will retain control over its data and AI strategy.
FollowAccenture’s (ACN) stock gained more than 1% in after-market trading on Wednesday following the announcement of a global artificial intelligence (AI) joint venture with Australian telecommunications giant Telstra.
Despite the positive market reaction, retail sentiment on Stocktwits remained bearish.
The Australian telecommunications company Telstra will be working with Accenture to rapidly accelerate its data and AI roadmap in a sever-year partnership.
The seven-year partnership aims to accelerate Telstra’s data and AI roadmap, leveraging Accenture's $3 billion AI investment in assets, talent, and ecosystem partnerships.
As part of the collaboration, Telstra will streamline its vendor support, consolidating its data and AI providers from 18 down to two strategic joint ventures – Quantium Telstra and the newly formed venture with Accenture.
The joint venture, in which Accenture will hold a 60% stake and Telstra 40%, will be responsible for building a modernized data and AI ecosystem.
Accenture Sentiment and Message Volume on Jan.16 as of 00:20 a.m. ET | Source: Stocktwits
On Stocktwits, retail sentiment around Accenture’s stock dipped to ‘bearish’ from ‘neutral’ a day ago, while message volumes remained at ‘normal’ levels.
While Accenture will have the majority share, Telstra will retain control over its data and AI strategy.
The collaboration also includes offering roles to Telstra’s data and AI teams in Australia and India, along with training opportunities to advance AI skills.
This move follows Telstra’s efforts last year to consolidate its vendors from over 400 to just two key strategic partners in a bid to reduce complexity and improve operational efficiencies.
The joint venture is expected to further deepen the strategic partnership between the two companies, accelerating innovation in AI and data infrastructure.
Accenture’s stock has seen relatively flat gains over the past year, however over the last 6 months, it saw an uptick of over 11%.
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