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T-Mobile US: The Un-Carrier Is an Indisputable Buy on the Dip
MarketBeat· 2025-04-29 12:16
Core Viewpoint - T-Mobile US, known as the "Un-carrier," has significantly disrupted the telecommunications industry with innovative policies and marketing strategies, leading to sustained stock growth and strong financial performance [1][2][7]. Company Overview - T-Mobile US has seen its stock price rise from $23.15 to an all-time high of $276.49, demonstrating exceptional growth and making it a candidate for a buy-the-dip strategy [2]. - The company has pioneered policies such as no long-term contracts, no termination fees, and unlimited data plans, which have reshaped consumer expectations in the wireless industry [3][5]. Financial Performance - In Q1 2025, T-Mobile reported earnings per share (EPS) of $2.58, exceeding analyst expectations by 11 cents, with a year-over-year EPS growth of 29% [9]. - Revenues increased by 6.6% year-over-year to $20.89 billion, surpassing consensus estimates of $20.63 billion [10]. - Adjusted free cash flow grew by 31% year-over-year to $4 billion, marking the best Q1 performance for the company [10]. Customer Growth - T-Mobile added 1.3 million new customers in Q1 2025, leading the industry and achieving its best-ever first quarter [12]. - The high-speed internet segment also saw significant growth, with net additions of 424,000 customers, setting a new record for the company [12][13]. Competitive Position - T-Mobile's disruptive policies have pressured competitors like AT&T and Verizon to adopt similar practices to maintain market share [7]. - The company's CEO highlighted the record customer growth and strong financial performance, indicating that T-Mobile continues to outpace its competitors [13]. Strategic Initiatives - T-Mobile has partnered with SpaceX to provide direct-to-cell connectivity through Starlink satellites, enhancing coverage and connectivity [14]. - The service is currently in beta and focuses on text messaging, with plans to expand to voice and data services [15].