Tuesday, July 22, 2014
The Worrisome Wireless Pricing Wars
A couple of notable trends are making investing in the domestic wireless space a concern. The stocks trade at multiyear highs and a pricing war triggered by T-Mobile (NYSE: TMUS ) is causing average revenue per user, or ARPU, to decline -- at least in the case of AT&T (NYSE: T ) . The combination usually doesn't go hand in hand , especially considering the domestic market is virtually saturated with users, causing Verizon Communications (NYSE: VZ ) to struggle with customer additions since it hasn't entered the pricing wars.
Any pricing war should always alert investors to pending stock losses, but with AT&T trading sideways for nearly two years now do investors really have cause for concern?
Read the full article here.
Disclosure: Long T. Please review the disclaimer page for more details.