Home Stocks T-Mobile Stock Dips As Subscribers Beat Views, Verizon – Investor's Business Daily

T-Mobile Stock Dips As Subscribers Beat Views, Verizon – Investor's Business Daily

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T-Mobile US (TMUS) on Wednesday said it added more than 1 million postpaid phone subscribers in the December quarter, beating analyst estimates as well as topping similar numbers from Verizon Communications (VZ). T-Mobile stock fell a fraction to close at 67.72 on the stock market today.


Analysts expected T-Mobile to report 829,000 postpaid phone subscriber additions. In the year earlier period, T-Mobile added 891,000 postpaid phone customers.

Postpaid customers are a closely watched financial metric because they are billed monthly, spend more on data services, and disconnect services less often than pay-as-you-go customers.

Verizon stock popped nearly 3% on Tuesday after it also beat views on fourth-quarter subscribers. Verizon said it added 650,000 postpaid phone subscribers, up from 431,000 in the year-earlier period. Analysts had estimated 345,000 added subscribers.

Verizon, T-Mobile Q4 Beats Raise Questions On AT&T, Sprint

Analysts said the strong fourth-quarter performance by both Verizon and T-Mobile may raise questions over how AT&T (T) and Sprint (S) fared. Analysts estimate that AT&T added 211,000 postpaid phone customers in the fourth quarter, while Sprint lost 13,000.

Cable TV firms Comcast (CMCSA) and Charter Communications (CHTR) also now sell wireless services. They rent network capacity from Verizon under a wholesale arrangement.

T-Mobile, owned by Germany’s Deutsche Telekom (DTEGY), is seeking regulators’ approval to merge with Sprint.

One reason federal regulators could shoot down the T-Mobile and Sprint merger is that the deal would reduce the number of national wireless firms to three from four. Verizon and AT&T are the two biggest wireless firms. Japan-based SoftBank owns a majority stake in debt-laden Sprint.

T-Mobile stock is trading above its 50-day-moving average, a positive sign. T-Mobile has a technical buy point of 70.78, roughly 4% above its current price. Verizon stock slipped 1.3% to 57.05 on Wednesday.


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