Under the Senate’s proposal, companies would be allowed to expense 100% of their capital spending for the next five years.
The US currently uses a worldwide tax system, in which US-based companies are liable to pay taxes on income earned anywhere in the world.
The 20% corporate tax rate has been making the headlines, even though it’s still just a proposal. But talks over the tax bill are heating up.
What many forget is that the Obama administration wanted to reduce the maximum corporate tax rate to 28%, but it did not specify the tax breaks.
The Senate’s version of the tax bill brings five major amendments that would impact the technology (QQQ) sector.
The Senate amendments to reduce the total cost of the tax bill after analysis showed that it would add $1.4 trillion to the budget deficit over ten years.
The US Senate passed its version of the new tax reform bill on December 2, 2017, after making various amendments to the original House version of the bill.
US tax reform is now progressing quickly, and the technology industry (QQQ), of course, is monitoring the developments closely.
Sprint’s (S) closing price on December 5, 2017, was $5.74 per share. Based on that closing price, Sprint has a market capitalization of ~$23 billion.
As of December 5, 2017, Sprint was trading 18% below its 100-day moving average. In comparison, Verizon (VZ) was trading 6.1% above its 100-day moving average.
Sprint’s (S) management believes its 2.5 GHz (gigahertz) spectrum will perform like lowband spectrum in 5G builds.
During the Wells Fargo Media & Telecom Conference on November 8, 2017, Marcelo Claure, Sprint’s CEO (chief executive officer), spoke about the company’s cost-cutting initiatives.
Sprint’s (S) postpaid phone churn rate is still the highest in the US (SPY) wireless space.
Only two of the 30 analysts covering Sprint (S) stock have rated it a “buy,” while 18 have rated it a “hold,” and ten have rated it a “sell.”
As of December 5, 2017, Sprint’s (S) market capitalization was ~$23 billion, making it the fourth-largest US wireless behemoth in terms of market capitalization.
Sprint (S) is constantly investing in capex to improve its network. In fiscal 2Q17, its spent $0.68 billion on cash capex.
In November, wireless carrier Sprint (S) announced a strategic MVNO (mobile virtual network operator) agreement with Altice USA (ATUS).
Merger discussions between wireless carriers T-Mobile (TMUS) and Sprint (S) have collapsed because they were unable to find mutually agreeable terms.
The stock of Apple (AAPL) iPhone lens manufacturer Largan Precision fell 10% on Wednesday, December 6, 2017, after it announced that revenue for December 2017 is expected to decline.
A quietly fought patent licensing dispute has yielded $137 million for Nokia (NOK) and has cost BlackBerry (BB) a similar loss.