Sprint-Turned-Softbank CEO Marcelo Claure 'Wants to Rule the World'
Why Verizon Needed to Diversify Its Wireless Business
Verizon’s wireless business accounts for more than 70% of its revenues. However, the business has recently seen falling revenue growth.
Must-know: The most popular casino games
Casinos’ popularity is growing. This suggests that people like to gamble occasionally. Unfortunately, they don’t always win. For most of the people, the real fun is playing the game—not necessarily winning.
Sprint’s liquidity must be maintained to fund capital investments
Sprint is cutting down on operating costs to manage high capital expenditures. But marginal cash flows aren’t alleviating Sprint’s liquidity concerns.
Why the US labor market recovery is weaker than it looks
This article takes a closer look at the unemployment rate in the U.S. and considers the implications for equity investors.
Why Sprint Raised Its Fiscal 2018 Outlook
In fiscal 2018, Sprint expects cash capital expenditure (excluding leased devices) of $5.0 billion–$5.5 billion as it ramps up its densification plan.
Sprint Expands Corporate Offerings with AI-Based Texting Service
Sprint (S) has joined Google (GOOGL) and Amazon (AMZN) in leveraging artificial intelligence technology to enhance its services as it seeks to attract more customers and diversify its business.
How AT&T Will Look after the Time Warner Merger
After the merger, AT&T is expected to attract customers by giving a wide array of discounts to buy two or more of its services.
What T-Mobile’s Technical Indicators Hint At
Now let’s take a look at T-Mobile’s technical indicators and compare them to those of its peers in the telecommunications space.
Verizon on Past Acquisitions and go90
In 2014, Verizon acquired Intel’s (INTC) OnCue, an Internet TV service, which was to be used in the user interface of the go90 service.
Why T-Mobile’s Service Revenues Continue to Rise in 1Q17
T-Mobile (TMUS) once again led the industry in year-over-year service revenue percentage growth in 1Q17. This marks the 12th consecutive quarter that TMUS has led the industry in this metric.
What the Balance Sheet Says about Sprint’s Financial Health
Over the last few quarters, Sprint (S) has been the only major US mobile operator that has been struggling to deliver profits.
What Do Wall Street Analysts Recommend for T-Mobile?
As of February 11, 2016, ~78.6% of analysts surveyed have given “buy” recommendations for T-Mobile, 17.9% have given “hold” recommendations, and ~3.6% have given “sell” recommendations.
What Drove Sprint’s Fiscal 3Q17 Earnings Growth?
Sprint’s (S) solid fiscal 3Q17 financial results suggested that the company is indeed holding its own in an intensely competitive wireless market.
Verizon’s Mean Target Price Has Risen
Verizon (VZ) stock offers a potential upside of ~9.5% going forward compared to its current market price of $54.03.
T-Mobile–Sprint Merger: Highlighting the 5G Opportunity
Verizon (VZ) expects to launch 5G fixed wireless broadband services in up to five US residential markets in 2H18.
What Sprint Foresees for Revenue Growth in Fiscal 1Q17
Wall Street expects Sprint’s (S) total revenues to rise ~3.0% YoY (year-over-year) to ~$8.25 billion in fiscal 1Q17 (ended June 2017).
What Are AT&T’s 5G Technology Plans?
AT&T (T) announced on January 2, 2018, that it expects to become the first US carrier company to roll out the real 5G network in some markets.
Why Netflix Is Streaming Low-Quality Video on AT&T and Verizon
Netflix has been streaming low-quality videos for subscribers on AT&T and Verizon Communications’ (VZ) wireless networks. Here’s why.
Why Do T-Mobile’s Service Revenues Keep Rising?
T-Mobile (TMUS) once again led the US wireless sector in YoY (year-over-year) service revenue percentage growth in 3Q17.
Must-read: Why Sprint’s operating margin is improving
Sprint cited a number of reasons why its margins have been improving. One of the major reasons was obviously the lower subsidy cost, which declined from $1.48 billion in 2Q13 to $1.05 billion in 2Q14.
Fed’s twin targets—are negative real interest rates needed?
The Federal budget deficit (the difference between budget collections and the government’s commitments) has also been a key source of uncertainty to both businesses and households.
Sprint and Possible EBITDA Growth in Fiscal 4Q16
Sprint’s EBITDA margin could be impacted by elevated competitive intensity in the industry in fiscal 4Q16.
Why AT&T Is Eyeing Market Share in Mexico
Mexico has been a huge success story and should be a long-term value creator for AT&T (T).
T-Mobile’s EBITDA Grow despite Higher Expenses
T-Mobile’s (TMUS) adjusted EBITDA grew ~14.8% YoY (year-over-year) to $3.2 billion in the third quarter.
Verizon’s Postpaid Phone Net Additions Returned to Solid Growth
In 2Q17, Verizon gained 358,000 postpaid phone net subscribers, while the company lost 289,000 postpaid phone net subscribers in 1Q17.
What Drove Sprint’s Fiscal 1Q17 Earnings Growth
Sprint’s earnings in the last few quarters Sprint’s (S) strong fiscal 1Q17 (ended June 2017) results indicate that a turnaround is on track. Sprint has begun to recover from years of customer losses and continues to make progress on customer retention, acquisition, and expense optimization initiatives. In fiscal 1Q17, Sprint’s earnings grew significantly YoY (year-over-year). Its […]
AT&T’s customer base continues modest growth in 4Q14
AT&T’s connected devices increased 21% year-over-year during 4Q14. The company added 1.9 million customers and connections in the fourth quarter.
Charter Communications’ Key Technical Levels Going into 2018
On January 22, 2018, Charter Communications (CHTR) was trading 5.5% above its 100-day moving average.
What to Expect from AT&T’s Postpaid Phone Net Additions in 2Q17
In 1Q17, AT&T lost 348,000 postpaid phone subscribers, up from losses of 67,000 net postpaid phone subscribers in 4Q16.
How T-Mobile Is Managing Its Service Revenue Growth
T-Mobile’s equipment revenues rose ~78.4% YoY to reach ~$2.7 billion in 4Q16, as the company promoted its equipment installment plans.
Key Technical Levels to Watch in AT&T Stock
Now let’s take a look at AT&T’s technical indicators and compare them to those of its competitors in the telecommunications space.
How Did Sprint Manage Costs in Fiscal 2017?
As Sprint is the fourth-largest mobile carrier company in the United States, it’s making significant efforts to tap more market share in the wireless space.
Sprint’s Focus Is Its Cost-Cutting Initiative
Sprint (S) has an annual cost-cutting initiative of at least $2 billion for fiscal 2016. These cuts are expected to come from operating expenses.
Verizon’s Revenue Growth Should Slow down in 1Q15
Verizon (VZ) will report its 1Q15 results on April 21, 2015. It’s the largest US telecom company. It had a market capitalization of $200.08 billion as of April 13, 2015.
Users consume more data on Verizon and Sprint networks
People consume more data via Wi-Fi because it’s much cheaper than cellular data plans—6.8 GB using Android phones and 8.9 GB using Apple iPhones.
Why Does Verizon Still Have an Advantage in Network Performance?
Network performance is the key factor affecting customer retention. Verizon (VZ) continues to pursue its three-tier network performance strategy.
Sprint’s profitability should continue to decline in fiscal 3Q14
Looking at Sprint’s profitability, Wall Street analysts expect Sprint’s EBITDA for the quarter to decline by ~3% due largely to a lower revenue base.
A Look at AT&T’s Current Valuations
On April 12, 2018, AT&T (T) stock closed at $35.16. It fell 13.3% in the trailing year.
How Was T-Mobile’s Prepaid Customer Growth in 4Q15?
During the quarter, T-Mobile’s prepaid subscribers increased robustly by ~8.1% YoY to reach ~17.6 million.
Verizon Registers Strong Revenue Growth in Q3 2018
Verizon’s wireless revenues rose ~6.5% YoY to reach $23.0 billion in the third quarter.
Could Sprint’s EBITDA Grow in Fiscal 2018’s Third Quarter?
In fiscal 2018’s second quarter, Sprint realized $100 million in YoY net cost reductions.
Can AT&T Continue Its Earnings Growth in 3Q17?
AT&T (T) will report its results for 3Q17 on October 24, 2017. Wall Street analysts are expecting the company’s earnings to increase in 3Q17.
Analyzing Sprint’s Distribution Strategy in Fiscal 2017
In its quarter ended March 31, 2017, Sprint (S) reported total revenues of ~$8.5 billion, compared to ~$8.1 billion in March 2016.
AT&T’s Big Investment Plans for Mexico: 4G LTE
A few days back, AT&T announced that it plans to invest $3 billion to extend its 4G LTE network across Mexico.
Must-know: Why did Omega Advisors exit its Wells Fargo position?
Omega Advisors Inc. is a New York–based investment advisory firm founded in 1991 by Leon G. Cooperman. Omega sold a 1.05% position in Wells Fargo.
Verizon’s Stock Performance and Moving Averages
On February 22, 2018, Verizon had a moving average convergence divergence (or MACD) of -0.69.
Concerns Surrounding the T-Mobile-Sprint Merger
T-Mobile believes that integrating T-Mobile and Sprint networks would take two to three years and would look similar to MetroPCS’s integration with T-Mobile.
AT&T: What the Technical Indicators Suggest
On April 4, 2018, AT&T was trading 2.1% below its 100-day moving average.
Analyzing Trends in Sprint’s Postpaid Phone Churn Rate
An increase in churn rate is negative for telecom companies because they have to deal with additional acquisition costs associated with customers.
Street Talk on AT&T: Analyst Recommendations after the 3Q17 Results
As of November 8, 2017, of the 30 analysts from various brokerage firms tracking AT&T (T) stock, 20 recommend a “hold,” while nine recommend a “buy.”
Verizon Best of Top 4 US Wireless Carriers in Network Performance
Verizon commanded the best customer retention rate among the top four carriers in the US in 2Q15.
Why T-Mobile Expects Stable Postpaid Growth in 2018
Under its existing revenue accounting standards, T-Mobile (TMUS) continues to expect its postpaid phone ARPU in 2018 to be stable compared to 2017.
Sprint Boosted Adjusted EBITDA with Cost Savings
Sprint (S) has been making serious efforts to cut its costs to revive its profits in the wireless space and has been eliminating more than $1 billion in costs in each of the past four years.
What Are T-Mobile’s Capex Plans for 2017?
T-Mobile (TMUS) is continually investing in capex (capital expenditure) to improve its network. By deploying more low-band spectrum, it continues to enhance its network.
Why the North American Market Is Exciting for Ericsson
Ericsson (ERIC) has set a goal to deliver a gross profit margin of 37%–39% by 2020.
Why Sprint’s Prepaid Net Additions Are Still Pressured
While Sprint (S) appears to be making progress on the postpaid side, it’s losing more subscribers than the company is gaining on the postpaid side.
Sprint’s Year-to-Date Stock Performance in 2018
On August 17, Sprint had a 14-day RSI reading of 67. T-Mobile, AT&T, and Verizon had 14-day RSI readings of 67, 62, and 73, respectively.
AT&T’s Top Priorities for 2018
During the UBS 45th Annual Global Media and Communications Conference on December 5, 2017, AT&T chief financial officer John Stephens talked about AT&T’s top priorities for 2018.
DE Shaw hedge fund opens new positions in FOXA, NWS, NVE, Sells S, HOG, CCL – 13F Flash (D)
In this six-part series, we will go through each one of the larger positions DE Shaw traded this past quarter DE Shaw is a New York–based $30 billion-plus quantitative hedge fund founded in 1988 by David E. Shaw, a former Columbia faculty member. The firm’s primary trading method is systematic and computer-driven. DE Shaw has […]
Understanding Sprint’s Capex Guidance
Sprint (S) spent $1.13 billion on cash capital expenditures, excluding leased devices, in the first quarter of fiscal 2018.
Is Sprint’s Prepaid Segment Turning a Corner?
In fiscal 4Q16, Sprint added 180,000 prepaid subscribers as compared to 264,000 losses in fiscal 4Q15.
Verizon Plans to Cut almost 7% of Its Workforce
Last week, Verizon (VZ) reported that ~6.8% of its total workforce had agreed to leave the company as part of its buyout program.
How’s AT&T Returning Value to Shareholders?
In the first quarter, AT&T declared a quarterly dividend of $0.51 per share—up ~2.0% year-over-year.
Verizon Edge penetration rate doubles in 4Q14
According to Verizon, its Edge penetration rate increased significantly during 4Q14. Higher Edge penetration should positively impact its 4Q14 earnings.
AT&T Keeps 5G Promise
AT&T’s (T) mobile 5G service went live in the United States on December 21 in time for Christmas.
Inside Sprint’s Customer Base
The performance of a mobile carrier’s network determines its customer base. Sprint (S) has been focusing on upgrading its network to keep its customers.
A Price Target Update for Sprint
Of the 22 analysts covering Sprint stock on December 27, only 14% rated it as a “buy,” while 23% rated it as a “sell,” and 63% rated it as a “hold.”
AT&T’s Valuation in January 2018
AT&T’s scale As of January 9, 2018, AT&T’s (T) market capitalization was ~$230.2 billion, making it the largest US wireless service provider in terms of market capitalization. In comparison, Verizon’s (VZ) market capitalization was ~$210.5 billion, T-Mobile’s (TMUS) was ~$54.6 billion, and Sprint’s (S) was ~$22.8 billion. Bollinger Band AT&T stock closed at $37.49 on January 9, near […]
Select Earnings Metrics for T-Mobile and Its Peers
T-Mobile had a forward price-to-earnings ratio of 20.9x on November 18, 2015. Its forward five-year price/earnings to growth ratio was 0.65.
Reading Sprint’s Moving Averages and Relative Strength
Now let’s take a look at Sprint’s (S) technical indicators and compare them to those of its competitors in the US telecommunications industry.
What We Learned from Sprint’s Brief Unlimited Plan Offer
For a period of one week in June, Sprint (S) offered an aggressively priced unlimited wireless plan.
Why Is Sprint Cutting Jobs?
According to Sprint, it has planned to rationalize annual costs by at least $2 billion from fiscal 2016.
Sprint’s Postpaid Upgrades Increased during Fiscal 3Q14
Sprint’s postpaid upgrades increased to ~11.5% during fiscal 3Q14. During the quarter, the postpaid upgrades increased both sequentially and YoY.
High-Yield Bond Funds Witness Outflows while Yields on Bonds Rise
Investor flows in high-yield bond funds were negative in the week ending December 11. Net outflows from these funds totaled approximately $3.5 billion.
Inside AT&T’s Expectations for Its New Streaming Service
At a recent analyst briefing, AT&T provided more details about its upcoming streaming service.
Street Talk on T-Mobile: Analyst Recommendations after the 3Q17 Results
As of November 13, of the 30 analysts actively tracking T-Mobile stock, 23 recommend a “buy,” while one recommends a “sell,” and six recommend a “hold.”
What’s Driving Capex at Verizon?
Verizon has been spending big on capex to improve its network and acquire additional spectrum for future use.
Verizon’s 3Q16 Earnings Exceed Expectations as Sales Disappoint
On October 20, Verizon (VZ) posted EPS (earnings per share) for 3Q16 that handily beat the consensus estimate, but sales were disappointing.
What to Expect for AT&T’s Postpaid Phone Net Additions in 3Q16
AT&T’s postpaid phone net additions In the previous part, we discussed AT&T’s (T) capex plans and expected free cash flow growth in 2016. In this article, we’ll look at the kind of postpaid phone net additions we could expect from AT&T in 3Q16. Postpaid phone users, especially smartphone users, are of particular value for mobile […]
Why AT&T Believes Mexico Is a Good Growth Opportunity
In Mexico, AT&T added 633,000 wireless net subscribers in 1Q17 compared to 529,000 in 1Q16. In Latin America, DIRECTV added 91,000 video subscribers in 1Q17.
Did Dan Loeb’s Third Point buy T-Mobile stake ahead of a merger?
Third Point said in its 4Q investor letter that it had an opportunity to establish a position in T-Mobile (TMUS) in November when the company conducted a secondary offering at $25.
Verizon: Analyst Recommendations and Target Price
Of the 33 analysts tracking Verizon (VZ) stock, 24.0% of them have recommended a “buy” for the stock.
What’s Fueling T-Mobile’s Growth?
Recently, T-Mobile’s chief financial officer and executive vice president shed light on the geographic segmentation of T-Mobile’s customer growth profile.
Technical Indicators for AT&T: A Peer Comparison
On December 29, 2016, AT&T (T) was trading 6.6% above its 100-day moving average of $40. In comparison, T-Mobile (TMUS) was trading 16.1% above its 100-day moving average
Amazon Go Could Raise Employment Question
Amazon’s (AMZN) automated Amazon Go store concept could improve the experience of shoppers, but it might also raise job creation questions.
Sprint: Why Most Analysts Have a ‘Hold’ Rating
Wall Street analysts expect a potential upside of 2.8% for Sprint (S) based on the company’s closing price on March 26.
AT&T or Verizon: Which Is Expected to Report Faster EPS Growth?
Verizon (VZ) reported adjusted EPS of $4.71 in 2018 compared to $3.74 in 2017, a ~25.9% YoY (year-over-year) rise.
Must-know: Sprint is resorting to price cuts
Sprint’s price cuts are clearly aimed at gaining net subscribers at the expense of its competitors. Sprint is the only major US telecom company that kept losing subscribers.
Putting T-Mobile’s Television Move in Perspective
T-Mobile’s revenues grew about 8.0% YoY (year-over-year) to over $10.0 billion in 3Q17, outpacing Verizon’s 2.5% revenue growth.
How Analysts View Charter Communications in March 2018
Of the 26 analysts tracking CHTR, 20 rated the stock as a “buy,” one rated the stock as a “sell,” and five rated the stock as a “hold.”
AT&T’s Latest Valuation Metrics
AT&T’s scale On December 26, 2017, AT&T’s (T) market capitalization was ~$239.8 billion, making it the largest US wireless player in terms of market capitalization. In comparison, Verizon’s (VZ) market capitalization was ~$217.1 billion, T-Mobile’s (TMUS) was ~$53.1 billion, and Sprint’s (S) was ~$23.2 billion. Bollinger Band On December 26, AT&T stock closed at $39.06, near its […]
IoT Attracts Telecom, Semiconductor, and Software Companies
Gartner expects that there will be 20.8 billion IoT devices by 2020. IoT devices represent a direct growth opportunity for the semiconductor industry.
Telcos lure customers with attractive family plans
Other telecom companies have also started luring customers with attractive family plans—AT&T, Sprint, and T-Mobile among them.
Updates on Sprint’s Partnership with Altice
In November 2017, wireless service provider Sprint (S) announced a strategic MVNO (mobile virtual network operator) deal with Altice USA (ATUS).
Comparing ETNs with ETFs: The must-know pros of ETNs
ETNs are free of tracking errors, and investors can defer taxation until they mature or are sold.
Key customers in the telecom industry
Post-paid users pay telecom companies periodically. The users pay after they received the service. They typically subscribe to plans for a fixed term.
Must-know: Why AT&T’s churn rate is the best in the industry
Lower churn rates help companies save cost that they would otherwise incur acquiring new customers. So it’s an important parameter in the telecom industry.
Why T-Mobile Plans to Launch a Video Streaming Service
T-Mobile’s (TMUS) current marketing drive is known as its “Un-Carrier” initiatives, which are driving subscriber additions for the company.
Did Verizon Beat Earnings Estimates in 1Q18?
Verizon (VZ) reported its 1Q18 results on April 24. VZ’s adjusted earnings per share rose ~23.2% year-over-year to reach $1.17 in 1Q18.