|Bid||0.00 x 1400|
|Ask||6.89 x 21500|
|Day's Range||6.79 - 6.96|
|52 Week Range||5.44 - 8.06|
|Beta (3Y Monthly)||0.02|
|PE Ratio (TTM)||N/A|
|Earnings Date||Oct 29, 2019 - Nov 4, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||6.86|
Recent news about the merger between Sprint (NYSE:S) and T-Mobile (NASDAQ:TMUS) reminded me why I don't like gambling on such events. As you know, the S stock price received a massive boost in the middle of the spring season. That was when Federal Communications Commission Chairman Ajit Pai expressed his support for the merger.Source: Shutterstock Moreover, the proposed union between the third and fourth largest U.S. telecoms cleared additional hurdles. Late last month, the U.S. Department of Justice declared that the two companies can move ahead with their merger. Combined with Pai's show of support, Sprint stock skyrocketed upon the positive news.However, it wasn't a complete loss for opponents of the move, who claimed that it would impede competitiveness. This criticism was especially relevant for rural customers, who may be vulnerable to onerous price increases. To address this issue, the DOJ required the merged company to spin off various assets to create a Sprint replacement.InvestorPlace - Stock Market News, Stock Advice & Trading TipsFurthermore, Dish Network (NASDAQ:DISH) will buyout these assets, including Sprint's prepaid wireless business. The satellite-TV provider will also acquire several of Sprint's wireless airwaves. Theoretically, this should help deliver mobile-internet access to rural residents. But despite this concession, many Democrats are not satisfied with the terms. Several of the left's presidential hopefuls requested that the FCC attain a public response to the merger before approving it. Citing the familiar argument about antitrust concerns, Democrats worried about negative consumer impact. Naturally, this is a distraction for S stock.But in this particular case, I believe the geopolitical implications overwhelmingly favor the merger. Thus, I wouldn't have too much anxiety about Sprint stock. S Stock Is One of the Trade War's Few BeneficiariesIn normal circumstances, I believe the Democrats' concerns would carry much more weight. They might even be enough to disrupt the bullish trajectory of the S stock price. And when it comes to the telecom industry, greater concerns exist. Right now, we have four major telecom companies. With the merger, we'd have three, making for a sizable 25% loss. * 10 Undervalued Stocks With Breakout Potential Put another way, post-merger, we'd be one company short of a duopolistic industry. At that point, consumers will have very little choice, thus bolstering the Democrats' argument.However, the narrative behind Sprint stock doesn't just involve competitive concerns. Rather, we have geopolitical ones as well. As I've argued a countless number of times, we're in the middle of a tech cold war. While China is technically an economic partner, they've made no bones about our underlying adversarial relationship.Let's remind ourselves that the biggest reason we're locked in a trade war is China's campaign of intellectual property theft. They want to catch up and later exceed our technological prowess. Obviously, the U.S. federal government will do everything to subvert China's plans.And that benefits S stock because part of winning in tech is winning in crucial sub-segments like 5G. With a successful rollout, 5G facilitates other innovations, such as artificial intelligence and automated transportation networks. Furthermore, in order to achieve this rollout, you must have strong telecom firms with appropriate know-how and capacity. Sprint has never really lacked in the former attribute. However, it's the latter that has inspired in part the merger proposition.Thus, here's the reality for Sprint stock. The U.S. can either have two relevant telecom names, and two hobbled ones. Or, all three can be vigorous rivals, competing not only for American customers but also American interests. The Sign of the TimesAs I mentioned back in June, Pai mentioned President Donald Trump when voicing his support of the merger. Specifically, Pai stated that 5G is a top priority for the White House. Back then, I said it was one of the smartest things Trump has ever uttered. I stand by that comment even more so today. That's because the Trump administration badly needs America's technological base to run in tip-top shape.According to a Wall Street Journal editorial, Trump is losing the trade war. As evidence, the president has increasingly ratcheted up the pressure on China, but without yielding substantive concessions. But because of the pressure, the domestic economy is showing fissures.With geopolitical events not working in the White House's favor, Trump must secure what he can. Plus, you have the combination of the FCC and the DOJ already greenlighting the merger. Therefore, the Democrats' opposition is nothing but noise for Sprint stock.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Dividend Stocks to Load Up On * The 10 Biggest Losers from Q2 Earnings * 5 Dependable Dividend Stocks to Buy The post Geopolitics Favor Sprint Stock Despite Antitrust Concerns appeared first on InvestorPlace.
Tower operators could benefit from increased leasing driven by accelerated 5G activity and new entrants into the wireless arena, according to KeyBanc Capital Markets. The Analyst Brandon Nispel maintained ...
The candidates want the Federal Communications Commission to seek public comment on T-Mobile's proposed Sprint takeover, effectively delaying the deal.
A group of Democratic senators led by 2020 presidential candidate Amy Klobucher penned a letter urging the Federal Communications Commission to issue an additional public comment period on the Sprint/T-Mobile merger.
Spanish, Portuguese Bonds Near 0% Yield Inverted yield curves, record amounts of debt yielding negative rates, and countries only a few years ago on the verge of bankruptcy yielding next to nothing. These are the signs of the beginning of a possible manic bubble phase of a nearly 40 year bond bull market now in […]The post Market Morning: Bond Bubble Reaches New Heights, Turkey Jails Mayors, Iran US Tanker Face Off, appeared first on Market Exclusive.
The Business Journal Untucked catches you up on Seattle-area business news from the past week, including an in-depth look at plane spotters, the rapid growth of Zillow Offers and Facebook's interest in Redmond.
U.S. Representative David Cicilline urged Federal Communications Commission Chairman Ajit Pai on Thursday to give the public the chance to comment on a draft order that would grant agency approval to the $26 billion merger of T-Mobile US Inc and Sprint Corp. Consumer advocacy groups have raised concerns that the merger could raise the cost of wireless services.
The two wireless carriers have reportedly begun to explore settlement agreements with the 16 attorneys general suing to block the merger. However, a spokesman for the lead attorney general denied that talks were taking place and said that a settlement was not in the cards.
Federal Communications Commission Chairman Ajit Pai has proposed a formal order approving the merger of Sprint Corp. and T-Mobile US Inc.
Since I last wrote about the four best 5G stocks to buy as the trend heated up, the sector has touched new highs. The companies benefited from telecom companies rolling out 5G wireless. That trend is not only heating up, but is accelerating. AT&T (NYSE:T) will offer a fixed-wireless-access solution later this year, letting customers get 5G internet at home. Beating AT&T in the 5G race is Verizon (NYSE:VZ), which officially became the first major U.S. carrier to offer 5G cell service. * 15 Growth Stocks to Buy for the Long Haul Verizon's victory puts pressure on telecom firms to accelerate their investments in the 5G buildout -- or risk falling behind.Here are seven 5G stocks to help you build investments for the future as the rest of the sector keeps heating up.InvestorPlace - Stock Market News, Stock Advice & Trading Tips 5G Stock to Buy: Ciena Corporation (CIEN)Source: Shutterstock Ciena Corporation (NYSE:CIEN) stock rebounded from near-$33 lows in May after reporting second-quarter results June 6. The company reported revenue growing by 18.5% to $865 million. CIEN stock's adjusted earnings per share was 48 cents. Although the company faced tougher year-over-year comparisons, investors bid the stock to yearly highs above $46. In the last few quarters, the company reported a growth rate a few points above the long-term average of 6%-8%. Beyond this year, growth will revert to that 6%-8% range. And EPS growth of 20% a year is sustainable.Ciena acquired TeraXion for $32 million in 2016, gaining control of its high-speed photonics components, which have enabled Ciena to unroll optical chipsets. This move also gave CIEN the execution capability around TeraXion's electro-optics portion of the drivetrain as well as the company's silicon photonics.The rollout of 5G had a positive impact on the CIEN stock's most-recent quarter. And Ciena is highly engaged with its customers, especially at the optical project level. With that level of involvement with the largest tier one companies in North America, expect revenue to grow extremely well for the foreseeable future.Assuming a reasonable five-year compound annual growth rate of 7.1%, CIEN stock has an upside of over 10%. Cisco Systems (CSCO)Source: Shutterstock Cisco Systems (NASDAQ:CSCO) stock's near-term growth will come from being the world's largest secure domain name system platform, though the data center is another source of core growth. Cisco has around 35 data centers that are growing monthly, as the company expands its cloud. It has 100 million daily users on its platform, yet the company wants to be a bigger player in 5G in the future.On July 9, Cisco announced that it would buy optical component maker Acacia Communications (NASDAQ:ACIA) for $2.84 billion. In doing so, the telecom equipment supplier will widen its addressable market in the 5G space. And because service providers will put upgrading to 5G on their roadmap, CSCO will have to upgrade its optical components, too. As global internet traffic triples into 2022, Cisco will have a way to sell the hardware customers need to support all that data movement. * 7 Safe Dividend Stocks for Investors to Buy Right Now Acquiring Acacia gives Cisco the needed expertise in metro, long-haul and undersea data movement. Previously, the company's optical portfolio covered only short-range data center connections.CSCO's integration of Acacia strengthens its positioning for 5G in the future. Acacia already makes many of the optical interconnect modules in Cisco's equipment. But in the future, the demand for high-speed interconnect will increase rapidly. Nokia (NOK)Source: Shutterstock Nokia (NYSE:NOK) stock broke out of the $5 trading range when it reported fiscal second-quarter results that beat consensus estimates. The company benefited from new 5G deal wins in the quarter. Helped by improving product competitiveness, the company now has an impressive 42 commercial 5G deals and it is operational in nine live 5G networks. With the 5G rollout starting, Nokia recognized 5G revenue in the second quarter. Investors should expect that revenue recognition continuing to build in the second half of this year.Nokia is well-positioned to be a 5G player in the future. As Nokia sells 5G radio to customers, it is also selling other Nokia products. Not only that, but NOK is building its 5G business by converting all of its 4G LTE customers -- it has over 300 commercial 4G customers who need help transitioning to 5G over the next 10-20 years.Investors who gave up on NOK stock would have missed the stock rallying from $5 to nearly $5.80. In the last week, the stock traded down to the $5.20 range, creating an entry point. At a forward price-to-earnings ratio of 13, Nokia is not valued as a strong 5G player for the future. Markets are making a mistake ignoring this company's strong prospects.As many countries move quickly to deploy 5G, management may raise its guidance. Now, operators expect it will take 4-5 years after the initial rollout to get 5G deployed to 75% of their customers. That suggests Nokia's 5G growth acceleration is still in its early stages.It may also be a dividend discount: the multi-stage model suggests that Nokia stock is undervalued by 20%. NXP Semiconductors (NXPI)Source: Shutterstock NXP Semiconductors (NASDAQ:NXPI) has pivoted its business towards the automotive and 5G market over the last few years. Strong 5G deployment in the last few quarters assures the company's positioning in the space. Its second quarter, posted July 30, met consensus estimates. This is due partly to the benefit of a large mobile customer, but the higher revenue from the customer also led to lower deployment in the current Q3. To adjust for the uncertainties, NXPI lowered its Q3 revenue guidance to $2.21 billion-$2.27 billion. This is below the $2.35 billion estimated revenue.NXPI stock fell to as low as $96.11 by Aug. 5, only to recover somewhat when it closed recently at around $100. Management is bullish on the outlook for 5G but is assessing the potential near-term slowdown in the industry. With investor expectations lowered, investors have a chance to buy NXPI stock at a 15 times P/E and 11.3 times forward earnings. In doing so, shareholders are positioning themselves for the next wave of 5G spending. * 8 Dividend Aristocrat Stocks to Buy Now No Matter What Currently, NXP Semiconductors is benefiting from the growth in multi-input and multi-output (MIMO) deployment, where customers are expanding their capacity associated with their installed infrastructure. In the future, customers will move to 5G deployments. And from there, they may upgrade that capacity through software deployments to facilitate 5G. So indirectly, MIMO is driving revenue higher in the short-term. And as 5G ramps up more strongly into 2020, investors should get rewarded within a year. T-Mobile (TMUS)Source: Shutterstock In the telecom carrier space, T-Mobile (NASDAQ:TMUS) stock is creating a bigger and bolder competitor through its Sprint (NASDAQ:S) acquisition. Odds of the merger improved after the U.S. Department of Justice gave the firms clearance for the deal. But first, Sprint must divest its pre-paid business and also sell its 800 MHz spectrum license.While T-Mobile expects to deliver $43 billion in synergies from the deal, the 5G efficiencies from the merger will interest investors most. Looking into the future, T-Mobile is committed to covering 97% of the U.S. population with 5G in three years. In six years, 99% of the population will get 5G coverage. This aggressive timeline is possible because T-Mobile will leverage its 5G network.Currently, T-Mobile is deploying a 600 MHz and millimeter wave spectrum, and the former will become the foundation for its nation-wide 5G network. Once 5G smartphones are available, the company will launch 5G on 600 MHz later this year.T-Mobile's growth will also come from its broadband business. It's goal is to reach 9.5 million in-home broadband subscribers by 2024. This complements the cost synergies, with $4 billion coming from the network division, $1 billion from sales, services and marketing, and $1 billion from the back office. With consistent customer growth and higher efficiencies ahead, it is no wonder that TMUS stock is in an uptrend in 2019. Verizon Communications (VZ)Source: Shutterstock Verizon, whose shares also offer a dividend yielding 4.3% based on recent stock prices near $56, is another 5G stock to buy for the future. Its focus on the fiber deployment gives it this edge. VZ stock now has fiber in 60 cities -- and is growing at 1,400 route miles per month.Verizon's capital expenditures will support the buildout of its 5G Ultra Wideband network. For the full year 2019, capital expenditure will be in the range of $17 billion-$18 billion.Verizon has launched 5G in nine markets and aims to be in 30 within the full-year period. More impressive is the speed that VZ's 5G Mobility offers now. Handsets may now run at 1.3-1.5 gig and average up to 2 gigs. Offering speeds that are significantly faster than 4G will encourage customers to upgrade.After VZ stock topped $61 in April and is down 9.4% from there, markets are not expecting much revenue growth from 5G. Still, analysts who cover VZ stock have a $61.67 price target. * 5 Cheap Stocks to Buy Now That the Fed Cut Rates Despite the conservative expectations investors have for Verizon, 2020 will be an important year for its 5G growth. 5G Home is limited to four markets right now but will continue to expand. As the company rolls out 5G Home customer premise (CP) equipment, it will see a positive contribution to revenue in 2021. Intel Corporation (INTC)Source: Shutterstock Intel Corporation (NASDAQ:INTC) is broadening its business beyond PC central processing unit chips. It believes its network infrastructure business will benefit from the positive future for 5G, so it is investing in networks. Already, this business grew 40% since 2014 from just over $1 billion in revenue to over $4 billion last year. INTC stock is hardly trading like a 5G growth play: The stock is valued at just around 10.8 times earnings.The global rollout of 5G is driving demand for "network cloudification." Intel has opportunity in the core network and at the edge. And Intel's 10 nm Snow Ridge system on a chip technology will power 5G-base stations early next year. Already, the company secured two large telecom equipment manufacturers with this architecture. By 2022, Intel forecasts having a 40% market share.During its second quarter, Intel decided to get out of the 5G smartphone modem business. It sold the unit to Apple (NASDAQ:AAPL). This is a critical turning point for Intel because the chip giant may turn its attention towards 5G networking instead.In the near-term, growth from the cloud business will be slow and in the single digits as customers begin transitioning to 5G. Later this year and in 2020, Intel expects its cloud business to grow at a faster pace. Gross margin will fall slightly and will bottom at 57% in 2021. And while a gross margin in the 60% range next year is driven by the 10 nm chip refresh, the 5G ramp-up will help its network business.As of this writing, Chris Lau was long NXPI and NOK. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 15 Growth Stocks to Buy for the Long Haul * 5 More Cloud Stocks With Plenty of Potential * 5 Clean Energy ETFs to Buy for 2019 The post 7 5G Stocks to Buy Now for the Future appeared first on InvestorPlace.
U.S. Federal Communications Commission Chairman Ajit Pai on Wednesday circulated a draft order that would grant approval to the $26 billion tie-up of T-Mobile Us Inc and Sprint Corp. "The evidence conclusively demonstrates that this transaction will bring fast 5G wireless service to many more Americans and help close the digital divide in rural areas," Pai said in a statement. The order must still be approved by two of the other four FCC commissioners.
Sprint (NYSE: S) has followed T-Mobile (NASDAQ: TMUS) by taking steps to allow customers to put more than one number on a single device. The No. 4 U.S. wireless carrier has picked Movius' cloud-based platform to offer the service. Sprint expects the multi-number, single-device service to launch in the first half of 2017.
Fifteen states and the District of Columbia are now seeking to stop the merger, which the states argue is anticompetitive and will cost their residents more than $4.5 billion annually. "Oregon’s addition to our lawsuit keeps our momentum going, and ensures that there isn't a single region of this country that doesn't oppose this anticompetitive megamerger," New York Attorney General Letitia James said in a statement. Earlier this month, a U.S. District Court in Manhattan ordered that the trial be delayed to Dec. 9, in a victory for the states, which had said they needed more time to investigate the merger.
At first glance, investors may not understand why AT&T (NYSE:T) stock trades at levels it reached in 1997. The forward price-earnings of T stock stands at only 9.4 and it has a high dividend yield of about 6%.Source: Shutterstock However, traders may remain on the sidelines for one big reason: AT&T. Specifically, tough price competition in wireless and cord-cutting have hurt T stock. Other negative catalysts for AT&T stock have included high spending on video content and the construction of a 5G network, which is quite expensive. * 8 Dividend Aristocrat Stocks to Buy Now No Matter What Still, 5G smartphones will hit the market soon. Once consumers begin to adopt this technology, T stock price may finally embark on a sustained rally for the first time in years.InvestorPlace - Stock Market News, Stock Advice & Trading Tips The Long-Term Outlook of T stock Is UpbeatI have been bullish on AT&T stock for a long time. As I stated in an earlier article, AT&T, along with Verizon (NYSE:VZ) and T-Mobile (NASDAQ:TMUS), will form a "wireless big three" as consumers and businesses adopt 5G. Emerging technologies such as artificial intelligence (AI) and The Internet of Things (IoT) cannot reach their full potential without 5G. Given the enormous cost of building a nationwide 5G network, other potential competitors will likely avoid entering the space. As a result, AT&T, Verizon and T-Mobile will wield considerable pricing power.However, that's a good reason to buy T stock and hold it for the long-term. The short-term outlook of AT&T stock is a different story. AT&T Continues to Hamper AT&T StockI still believe AT&T has fought too hard to resist the cord-cutting trend. Consumers grew weary of $100-plus per month cable TV bills and the proliferation of unattractive channels. Let's be honest; consumers do not want 24-hour channels devoted to obscure topics like farm news or underwater basket weaving. That pricey model makes no sense in a world of on-demand streaming.AT&T eventually came to this conclusion and took on huge debts to acquire content providers such as HBO, Turner Cable, and Warner Bros. studios at a considerable cost. The company put these companies together to form WarnerMedia, a streaming service that could recruit a substantial number of subscribers.However, despite AT&T's investment, its video revenues will not match the levels they reached during the heyday of pay-TV. Moreover, content spending and the 5G buildout have left AT&T with a debt burden that stood at $157.79 billion as of the end of the second quarter. Since AT&T's equity stood at $194 billion at the end of Q2, one can see why many owners of T stock have become uncomfortable with its balance sheet. The Dividend Makes T Stock AttractiveNonetheless, investors can benefit from the annual dividend of $2.04 per share of T stock, which comes to a yield of 6%. AT&T has increased its payout for 34 straight years. Consequently, ending the streak would show a lack of confidence and hurt T stock for years to come. So even if investors don't expect AT&T stock price to rise much in the short-term, they can still earn substantial cash while they wait for the company to turn itself around.Moreover, I think the stagnation of T stock, which has lasted for nearly a decade, may end soon. Its long-term debt fell by more than $6 billion in Q2. Furthermore, 5G will almost certainly bring better pricing power than 4G.Additionally, price competition from T-Mobile, which has forced AT&T and Verizon to cut prices in recent years, should subside. Given the cost of building a 5G network and acquiring Sprint (NYSE:S), T-Mobile will likely not be able to start another price war. Concluding Thoughts on T StockAT&T stock price appears poised to move higher as the 5G rollout begins. T stock has remained rangebound for years as the company's revenues fell and its costs increased. The cost of the dividend has put the company in a difficult position.However, the 5G network that burdened the company for years may soon give AT&T a level of pricing power not seen since its days as a monopoly. Moreover, even if T stock stagnates in the near-term, investors can collect a generous, increasing dividend.The company's high debt levels and the questionable nature of its content strategy indicate that some of its decisions have been suspect. However, with 5G coming soon, the current AT&T stock price may look like a huge bargain in retrospect.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 8 Dividend Aristocrat Stocks to Buy Now No Matter What * 7 Stocks to Buy to Ride the Vegan Wave * 4 Safe Stocks to Buy Amid Trade War Turbulence The post Investors Should Consider Buying AT&T Stock Despite AT&T's Problems appeared first on InvestorPlace.
Editor Brian Kaberline writes that although your instinct might tell you that Sprint's merger with T-Mobile would be bad for consumers, deeper reflection makes for a stronger case.
Nokia (NYSE:NOK) stock saw a brief pop last month thanks to an earnings beat … but can that move in NOK stock last much longer?Source: Shutterstock The release of second-quarter financials on July 25 boosted shares from $5.18 per share up to $5.60 per share. However, since then, Nokia stock has fallen back to about $5.40 share.Increased demand for 5G technology helped improve sales 7% year-over-year. But the company continues to post net losses due to restructuring and impairment charges. With a turnaround still in progress, is NOK worth a buy today?InvestorPlace - Stock Market News, Stock Advice & Trading TipsWhile the company has positive catalysts in the works, Nokia has missed the mark many times in the past. Let's take a closer look, and see if there is additional upside for Nokia stock. NOK Earnings: A Deeper LookThe company's financials are clouded by goodwill impairment and amortization charges. This is primarily related to the company's 2016 merger with Alcatel-Lucent. There are also restructuring charges related to their cost savings plan. With this in mind, let's take a look at the company's adjusted earnings. Adjusted (non-IFRS) operating profits exclude these charges. This provides a clearer picture of Nokia's operating performance. Non-IFRS operating profits were up 35% year-over-year. Adjusted earnings-per-share (EPS) of 0.05 euros were up 67% from the prior year's quarter. * 7 Winning High-Yield Dividend Stocks With Payouts Over 5% With annual cost savings of $700 million euros anticipated by 2020, the company has runway to improve operating margins. In terms of organic growth, the 5G revolution provides plenty of gas to grow revenues. Nokia's full-year outlook projects adjusted EPS of 0.25-0.29 euros. The company anticipates additional earnings growth in 2020, with projected adjusted EPS of 0.37-0.42 euros/share for next year.As InvestorPlace contributor James Brumley pointed out last month, Nokia has been landing 5G contracts left and right. NOK has signed over 42 end users, including China Mobile (NYSE:CHL), China Unicom (NYSE:CHU) and Sprint (NYSE:S). But the company still needs to execute. This presents a material risk for NOK stock. The company has set up high expectations. If they fail to deliver, new opportunities could dry up, sending NOK shares lower.There are additional risks to consider. As 5G reaches critical mass, competition will likely heat up. The U.S.-China trade war could accelerate, negatively impacting Nokia's business in both countries. But what does this mean for investors entering Nokia stock today? Can they enter the stock at a discount, or will they have to pay a premium? Let's take a look at the valuation of NOK stock, and see how it stacks up to peers. Nokia's ValuationNOK stock currently trades at a trailing twelve month Enterprise Value/EBITDA (EV/EBITDA) ratio of 10.1. This is a slight discount to competitors such as Cisco (NASDAQ:CSCO), which trades at an EV/EBITDA ratio of 13.8. Nokia stock also trades at a discount other telecom equipment manufacturers. LM Ericsson (NASDAQ:ERIC), for example, trades at an EV/EBITDA ratio of 11.6; Motorola Solutions (NYSE:MSI) trades at an EV/EBITDA ratio of 16.7.It is important to note that NOK has lower EBITDA margins. The company's EBITDA margins are 11.4%, which pales in comparison to both Cisco and Motorola Solutions. Cisco has EBITDA margins of 30.8%. Motorola Solutions has EBITDA margins of 26.2%. However, the company's operating margins are in line with LM Ericsson, which has an EBITDA margin of 9.8%.But is this discount warranted?Nokia has dropped the ball many times in the past. This under-performance has burned contrarian investors trying to call a bottom. Is the 5G revolution Nokia's "this time it's different" moment? The company faces many risks in executing the 5G rollout. But much of this negative sentiment is priced into shares, as seen by the discount to peers. This means investors could see tremendous upside if the company's 5G sales meet expectations.Nokia stock presents a high risk/high return opportunity for investors. But does this make the stock a screaming buy? While the company's future prospects are not set in stone, the positive catalysts in play make this opportunity a strong buy for long-term investors. * 7 Stocks the Insiders Are Buying on Sale Bottom Line on NOK StockNokia releases third-quarter earnings in late October. This gives investors several months to enter a position in NOK stock before additional information makes the bull case (or bear case) for shares. NOK trades at a discount to peers. If they can execute 5G successfully, the company's fortunes could materially improve. This would be a shot in the arm for Nokia stock.As it stands now, what's the play with NOK?In the short-term, investors may be not see upside. Shares will likely trade sideways, pending new developments on the 5G front. However, long-term, Nokia may be the right contrarian play in the telecom space. For investors looking for speculative opportunities in large-cap stocks, Nokia stock may just be a buy.As of this writing, Thomas Neil did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Internet Stocks Getting Hammered * 6 Big Growth ETFs to Buy For the Second Half of 2019 * 5 Cheap Stocks to Buy Now That the Fed Cut Rates The post Will the 5G Revolution Bring Upside to Nokia Stock? appeared first on InvestorPlace.
Driven by strength in wireless business, Verizon (VZ) beats on second-quarter 2019 estimates, while Qualcomm (QCOM) surpasses third-quarter fiscal 2019 earnings estimates despite trade woes.
OVERLAND PARK, Kan., Aug. 7, 2019 /PRNewswire/ -- Sprint will offer Samsung Galaxy Note10 and Galaxy Note10+ beginning Aug. 23. Galaxy Note10 offers the power of the S pen and ultimate productivity in a compact form factor with a 6.3 inch Infinity Display. It will be available with 256GB of internal memory and three color options (Aura Glow, Aura White and Aura Black).
As the merger between Sprint and T-Mobile drags on, top executives at the Overland Park-based wireless carrier will get a collective payout bump of $14.4 million.
(Bloomberg) -- Masayoshi Son can’t wait to wash his hands of Sprint Corp.SoftBank Group Corp. will stop consolidating the U.S. carrier in its results starting next earnings report, anticipating a successful merger with T-Mobile USA Inc. despite questions over the deal’s eventual closing. That accounting change will slash SoftBank’s debt load and help it shed its image as a staid telecoms company, the Japanese billionaire said Wednesday.Son is eager to put the Sprint chapter behind him. The wireless carrier’s roughly $47 billion debt pile has weighed on its Japanese owner’s valuation ever since the latter agreed to pay $21.6 billion for a majority stake in 2012. Son in turn has repeatedly railed at investors for misjudging his company’s true value. Now, the entrepreneur can better plug SoftBank as an technology investment powerhouse, allowing him to focus his energies on the $100 billion Vision Fund and its $108 billion successor.“For years, investors have focused on the immediate struggles at Sprint, overlooking the longer-term potential of Son’s technology investments,” said Atul Goyal, an analyst at Jefferies Group.The accounting change will reduce the group’s overall interest-bearing debt load by about 29%. But because Sprint’s borrowings are non-recourse to the parent, meaning the Japanese company will not owe anything to its U.S. unit’s creditors, the removal of the debt from the balance sheet is largely symbolic and may not affect SoftBank’s credit rating.Son has previously pointed out that the Sprint excision will have a significant impact on SoftBank’s annual interest expenses — as much as halving them — which amounts to an even greater reduction than in the overall debt because Sprint pays higher interest on its borrowings.“There is still a lingering image of SoftBank as a debt-laden telecommunications company,” Son said at the briefing. “That’s quite different from the truth.”On Wednesday, SoftBank reported first-quarter profit that beat the highest analyst estimate thanks to valuation gains from Vision Fund investments such as Slack Technologies Inc., which went public in June, hotel chain OYO Rooms and food-delivery app DoorDash Inc. The gains were offset by a 195.3 billion yen decline in the fair value of holdings including Uber Technologies Inc. Operating income in the three months ended June slipped 3.7% to 688.8 billion yen ($6.5 billion), but trumped the 345.3 billion yen average analyst estimate. SoftBank also said the Vision Fund held 81 investments worth about $66.3 billion.The Sprint accounting change signals Son’s confidence in sealing the deal. While the Justice Department approved the acquisition last month, the transaction has been held up by an antitrust lawsuit by more than a dozen states including California and New York. Texas was the latest to join the fight last week. The deal already has the approval of the Committee on Foreign Investment in the U.S. and Federal Communications Commission Chairman Ajit Pai has expressed support.“There hasn’t been a case in history where you had those three approvals and the deal didn’t get done,’’ Son said.Sprint has been profitable for only one of the past five years. It accounted for 38% of SoftBank’s revenue in the three months ended June, slightly less than the company’s domestic telecom operations.Son originally considered buying T-Mobile in 2014 before abandoning the effort when officials at the FCC and Justice Department signaled they were against a theoretical merger with Sprint. Another attempt at a merger fizzled out in late 2017 amid disagreement over control. SoftBank finally agreed to sell Sprint to T-Mobile in 2018, getting about a 27.4% stake in the resulting entity in return.The billionaire acknowledged that his Sprint purchase has been largely seen as a failure, but said that SoftBank generated a 21% rate of return on the deal. All but 400 billion of the 2.1 trillion yen acquisition came from borrowing, he said. That smaller proportion of shareholder value has tripled to 1.3 trillion yen, “not bad at all as an investment.”“From a sentiment perspective, Sprint got in the way of a lot of investors, who thought of it as a bad deal,” said Chris Lane, an analyst with Sanford C. Bernstein & Co. “This at least cleans up a mess. It’s a good save and allows them to move on.”Last month, Son announced that he’s setting up a second Vision Fund. SoftBank is committing $38 billion in capital itself and expects to collect money from Apple Inc., Microsoft Corp., Foxconn Technology Group and the sovereign wealth fund of Kazakhstan. He also won broad support from Japanese financial institutions, with seven of them identified as signing memorandums of understanding to participate.“The merger of Sprint with T-Mobile and Vision Fund 2, these are great milestones for SoftBank,” Son said. “The only way from here is forward.”To contact the reporter on this story: Pavel Alpeyev in Tokyo at email@example.comTo contact the editors responsible for this story: Edwin Chan at firstname.lastname@example.org, Vlad SavovFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
OVERLAND PARK, Kan. and NEW YORK , Aug. 6, 2019 /PRNewswire/ -- Sprint (NYSE: S) today announced its fourth 5G device and first smartphone with OnePlus, a global mobile technology company. Device specifications, ...
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