|Bid||57.76 x 2200|
|Ask||58.83 x 2900|
|Day's Range||57.94 - 58.36|
|52 Week Range||54.26 - 62.22|
|Beta (5Y Monthly)||0.45|
|PE Ratio (TTM)||12.49|
|Earnings Date||Apr 20, 2020 - Apr 26, 2020|
|Forward Dividend & Yield||2.46 (4.23%)|
|Ex-Dividend Date||Jan 08, 2020|
|1y Target Est||61.79|
(Bloomberg) -- T-Mobile US Inc. and Sprint Corp. agreed to new terms for their pending merger that take account of the deterioration in Sprint shares since the transaction was first agreed, putting the industry-altering deal a step closer to completing.T-Mobile owners will get roughly 11 shares of Sprint for each of their stock, the companies said Thursday. That’s an increase from a ratio of 9.75 previously -- a more favorable deal for T-Mobile’s German owner Deutsche Telekom AG.Getting one of the biggest U.S. wireless mergers ever over the finish line would be a boon for Deutsche Telekom as it will reduce its reliance on Europe, where carriers are struggling to grow amid fierce competition. T-Mobile makes up more than half of Deutsche Telekom’s sales, up from about a third in 2014. A completed deal will also benefit Sprint owner SoftBank Group Corp. by allowing its chairman, Masayoshi Son, to better focus on his technology investments and the $100 billion Vision Fund.The combined company, which will operate under the T-Mobile name, will have a regular monthly subscriber base of about 80 million -- in the same league as AT&T Inc., which has 75 million subscribers, and Verizon Communications Inc., which has 114 million.When the transaction closes, which could happen as soon as April 1, Deutsche Telekom is expected to keep 43% of the merged entity, while SoftBank has 24%. The rest will be held by public shareholders.Deutsche Telekom shares were little changed in early trading in Frankfurt. The original accord, which united the third- and fourth-largest U.S. wireless carriers in a $26.5 billion deal, was forged in April 2018. That pact lapsed on Nov. 1, and the companies didn’t initially renew the terms while they fought for government approval. When a federal judge rejected a state lawsuit to block the transaction earlier this month, that put the talks on the front burner.Along the way, Sprint’s condition has worsened. That added pressure to redraw the agreement so that it was more favorable to Deutsche Telecom.SoftBank agreed to surrender 48.8 million T-Mobile shares that it will acquire in the merger to the combined company immediately after the transaction closes. But those shares could be reissued to SoftBank by 2025 if the new company’s stock stays above $150 for a period of time.Sprint investors other than SoftBank will still get the original ratio of 0.10256 T-Mobile shares for each Sprint share -- the equivalent of about 9.75 Sprint shares for each T-Mobile share.Sprint’s monthly churn -- a closely watched measure of how many customers leave -- has risen to nearly 2%. That means roughly a quarter of its subscriber base is quitting the carrier each year. And the company isn’t making up for the decline by charging more: Average revenue per customer has fallen 5% since the deal was announced.Analysts such as LightShed Partners’ Walt Piecyk said the merger’s exchange ratio should be closer to 12, given Sprint’s deteriorated business.(Updates with share price in sixth paragraph.)\--With assistance from Stefan Nicola.To contact the reporter on this story: Scott Moritz in New York at email@example.comTo contact the editors responsible for this story: Nick Turner at firstname.lastname@example.org, Jennifer RyanFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Verizon and multi-platinum, three-time GRAMMY® Award winning artist The Weeknd are partnering to bring members of customer loyalty program Verizon Up, opportunities for exclusive access to concerts and private experiences throughout 2020. “Connecting with my fans is paramount,” said The Weeknd. During all U.S. tour dates of The Weeknd’s 2020 After Hours Tour, Verizon Up ticket holders will get access to an exclusive stage side experience within the Verizon Up Members section.
Verizon Wireless is cutting almost 500 jobs in Hilliard. According to a WARN notice filed with Ohio Department of Job and Family Services, the company is closing its Business Government Customer Operations Center and its customer support service team operation, while also downsizing its credit order review operations, all of which are located at 5000 Britton Pkwy. Verizon notified employees earlier this month, but did not disclose how many people would be affected at that time.
Verizon built its powerful brand around the quality of its wireless network. If Verizon stock is going to retain bragging rights with 5G wireless services, it's going to need more bandwidth.
Fundamental and technical analysis raise issues in buying Verizon stock, usually a dividend play. Potential 5G wireless growth and T-Mobile's purchase of Sprint also matter for VZ stock.
NASCAR and the New York-based wireless carrier last week announced their new partnership, which will start with upgrades to track Wi-Fi systems and eventually incorporate wireless 5G technology.
T-Mobile stock popped following a federal judge's ruling approving the Sprint merger. Here is what fundamental and technical analysis says about buying T-Mobile ahead of the merger closing.
The merger between T-Mobile US and Sprint is within reach, the head of its main owner Deutsche Telekom said, forecasting that the combined business would quickly close a valuation gap on market leaders AT&T and Verizon. Highlighting the positive market reaction after a New York judge last week dismissed a lawsuit brought by more than a dozen U.S. states trying to block the deal, CEO Tim Hoettges said the 'new' T-Mobile would have a market value of around $120 billion.
Verizon Communications (VZ) is the second-largest telecommunications company in the United States by market capitalization, behind only AT&T; (T), explains Ben Reynolds, editor of Sure Retirement.
The Tennessee Department of Treasury made some big changes in its stock investments in the last quarter of 2019. The department, which manages all of the state’s investments, including its pension fund, reduced investments in (GE) (ticker: GE), General Motors (GM) and (VZ) Communications stock (VZ) in the fourth quarter. Tennessee’s treasury also bought more (WMT) stock (WMT).
Nokia (NYSE:NOK) just reported solid results for its fourth quarter on Feb. 6. The Finnish telecom equipment and software maker produced 1.357 billion EUR in free cash flow. This drove its net cash balance up to 1.73 billion on Dec. 31, 2019. NOK stock is up over 6% since earnings.Source: RistoH / Shutterstock.com It is now much more likely that Nokia will be able to restore its regular dividend payments. As I pointed out in my article on Dec. 30, "free cash flow is the key to the future of Nokia." Free Cash Flow Growth Will Lead to Dividend PaymentsLast quarter, management warned that unless it cut out the dividend it would not be able to raise its cash balance. It said then that once the cash balance hit 2 billion EUR, it would restore the dividend.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Exciting Stocks to Buy for Aggressive Investors With this latest earnings release, management was even more clear, now that free cash flow is growing again. Here is what they said:"As we noted in our third quarter announcement, our Board said it expects to resume dividend distributions after Nokia's net cash position increases to approximately EUR 2 billion.Given typical cash seasonality, we would not expect to reach that level in the first three quarters of this year.Should we exceed the EUR 2 billion level after that point, the Board will assess the possibility of proposing a dividend distribution for financial year 2020. "So management is now predicting that by the end of 2020, if free cash flow continues to raise the cash balance above 2 billion EUR, it would "assess" paying a dividend. Since net cash is already at 1.4 billion EUR, it seems highly likely that the 2 billion EUR level will be reached this year.For example, despite the huge increase in free cash flow during Q4, its full-year 2019 FCF was negative 257 million EUR. So if the company can continue to make strides like in Q4, it should reach its net cash goal sooner than later. Nokia's 5G Win Rate Is IncreasingNokia reported that it won 18 more 5G deals in Q 2019. For example, at the end of Q3 it had signed 48 networks to use their 5G systems, with 15 that were already live. As of Q4, that figure had risen to 66 deals, with 19 live networks.As I wrote in my last article, Nokia is battling hard against Swedish 5G maker Ericsson (NASDAQ:ERIC) and Huawei from China. Price cutting, incentives along with technology/software competition has been fierce.Nokia now says, "At the end of the fourth quarter 2019, our 5G win rate was over 100% outside of China and in the mid 90% range including China, reflecting strong performance."Moreover, its super-efficient 5G Powered By ReefShark, a system-on-a-chip 5G design, was 10% of its 5G shipments in Q4. It expects to have that ratio reach 35% by the end of 2020 and 70% by 2021 year-end. This chip will deliver margin improvements for Nokia as well as performance advantages.Nevertheless, according to the Wall Street Journal, Nokia is going to be hit hard by the coronavirus impact on its supply chain in China. Nokia did not quantify that yet in its conference call. Nokia has thousands of research-and-development employees in China. Nokia Is Still CheapRight now NOK stock trades for just 16.4 times its 2020 earnings expectations by Seeking Alpha analysts. Nokia has a nearly $25 billion USD market value, so its FCF yield is high.For example, last year's FCF of 1.357 billion EUR equates to an FCF yield of 5.90%. (This is calculated as follows: $1.0878 FX rate times $1.357 billion, all divided by $25 billion = 0 .059.) That is an attractive valuation, especially if free cash flow continues to grow this year, as Nokia expects it will.Moreover, possibly with some tongue in cheek, the U.S. attorney, William Barr, suggested this week that the U.S. government should consider taking a controlling stake in Nokia. The U.S. is intent on preventing China's Huawei group from gaining inroads in the 5G telecom market.That helped push up NOK stock. It probably didn't hurt that Barr himself was the former general counsel for Verizon Communications (NYSE:VZ). So far no one is quite sure if he was serious. It is not uncommon for governments to take controlling stakes in telecom operators, but focusing on telecom gear makers is less common. What Should Investors Do With NOK Stock?So far it seems pretty clear that Nokia's board is not going to make a decision about paying a dividend until the end of 2020. But if Nokia produces solid earnings, free cash flow, and net cash balance rise, watch out.NOK stock will likely rise in anticipation of the resumption in dividend payments if that occurs. So at some point, investors will have to decide if Nokia is cheap enough as it stands if they want to benefit.As of this writing, Mark Hake, CFA does not hold a position in any of the aforementioned securities. Mark Hake runs the Total Yield Value Guide which you can review here. The Guide focuses on high total yield value stocks. Subscribers receive a two-week free trial. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Exciting Stocks to Buy for Aggressive Investors * 20 Stocks to Buy From the Law of Accelerating Returns * 7 U.S. Stocks to Buy on Coronavirus Weakness The post Nokia's Free Cash Flow Growth Raises the Prospects for a 2020 Dividend appeared first on InvestorPlace.
European police chiefs have thrown their support behind British demands for technology companies to urgently transform how they operate to prevent access to child sex abuse, Britain's National Crime Agency (NCA) said on Friday. The NCA said abuse images were easily available online and could be reached with just three clicks of a mouse on internet search engines. "The technology industry urgently needs to transform its response to counter the extreme level of online offending," said Lynne Owens, the NCA's director general.
What you need to know: Verizon to bring enhanced wireless connectivity to 12 NASCAR-owned racetracks over next three years as the Official Wi-Fi PartnerVerizon named Official.
The Daytona 500 is kicking off the 2020 NASCAR Cup Series season this weekend in Florida. The long-term goal is to lay a foundation for 5G communications and services at NASCAR race venues. A more immediate improvement that Verizon intends to make is in WiFi.
(Bloomberg) -- Deutsche Telekom AG wants to renegotiate the terms for the sale of Sprint Corp. to its U.S. wireless unit T-Mobile US Inc., according to people familiar with the matter.The German carrier, the majority owner of T-Mobile, is seeking a lower price because Sprint’s shares have been trading below their level when the deal was proposed in 2018, said the people, who asked not to be identified as the deliberations are private.Getting one of the biggest U.S. wireless mergers ever over the finish line would be a boon to both companies. For Deutsche Telekom, the deal reduces its reliance on Europe, where carriers are struggling to grow amid fierce competition. For the chairman of Sprint owner SoftBank Group Corp., Masayoshi Son, it allows him to better focus on his technology investments and the $100 billion Vision Fund. The renegotiation talks are expected to start soon, the people said. They would follow a victory for the companies in a U.S. court this week, when a federal judge rejected a state lawsuit against the tie-up. Now the deal is in the home stretch, with only minor approvals left to secure and final financial terms to be ironed out. SoftBank declined to comment. Deutsche Telekom didn’t immediately return a call seeking comment.Deutsche Telekom shares fell 1.4% in Frankfurt as of 12:58 p.m. on Thursday. What Bloomberg Intelligence Says:Deutsche Telekom has limited leverage to renegotiate the terms of its Sprint acquisition, we think, even as the valuation of the latter jumped to $75 billion from $60 billion in 2018 under the deal terms, despite worsening operational performance. The allure of consolidation, including the acquisition of an attractive spectrum portfolio, suggests only a modest potential improvement in stock-exchange ratio.\-- Erhan Gurses, BI telecoms analystClick here for the researchFrequency ConstraintsWhile Sprint’s standalone value has dropped, SoftBank also sees itself in a good position because T-Mobile needs Sprint’s wireless frequencies or would face capacity constraints within as little as two years, one of the people said.T-Mobile’s importance for Deutsche Telekom has grown steadily in recent years and it now accounts for about half of group sales, up from around a third in 2014. T-Mobile and Sprint haven’t renewed the merger agreement since it lapsed on Nov. 1, and there have been discussions regarding several issues that T-Mobile Chief Executive Officer John Legere described as “not hostile” that month on an investor call. T-Mobile has suggested there could be new terms.The combined company, which will operate under the T-Mobile name, will have a regular monthly subscriber base of about 80 million -- in the same league as AT&T Inc., which has 75 million subscribers, and Verizon Communications Inc., which has 114 million. T-Mobile will have more wireless frequencies than any other U.S. carrier, giving it an advantage as the industry transitions to the next generation of wireless technology, the much-faster 5G standard.Bloomberg News reported Wednesday that Sprint and SoftBank would likely have to accept a lower price than when the merger agreement was first forged in April 2018. Sprint’s monthly churn -- a closely watched measure of how many customers leave -- has risen to nearly 2%, which means roughly a quarter of its subscriber base is quitting the carrier each year.The German company is likely to leverage that to negotiate a lower price, but Sprint also has valuable radio frequency spectrum without which T-Mobile US will face serious bottlenecks, a person familiar with the matter told Bloomberg on Wednesday.The Financial Times previously reported that Deutsche Telekom is pushing to renegotiate terms of the deal, citing unidentified people familiar with the matter.(Updates with analyst comment in fifth paragraph)\--With assistance from Stefan Nicola.To contact the reporters on this story: Pavel Alpeyev in Tokyo at email@example.com;Scott Moritz in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Rebecca Penty at email@example.com, Thomas Pfeiffer, Jennifer RyanFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
It's early days in the 5G wireless networks buildout. What 5G stocks will get a boost? The top 5G stocks in which to invest include chipmakers, network gear and fiber-optics makers.
NEW YORK, Feb. 12, 2020 -- Verizon Communications Inc, (NYSE, Nasdaq: VZ) will hold an investor meeting on Thursday, Feb. 13. Presentations will be webcast and will cover.
T-Mobile US Inc may be limited in its ability to trim the price of its $40 billion acquisition of Sprint Corp after it overcame regulatory obstacles to completing the deal, investors and analysts said on Tuesday. Before it is completed, T-Mobile's German parent, Deutsche Telekom AG, plans to ask Sprint's majority owner, Japan's SoftBank Group, to agree to a lower price, arguing that Sprint's fortunes have deteriorated following their agreement two years ago, sources told Reuters on Monday. Sprint shares were trading at around $8.3 on Tuesday, a 14% discount to the $9.6 per share price that the all-stock deal with T-Mobile assigns Sprint.