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Apple’s iPhone Drives Subscriber Growth at Sprint

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Sprint Nextel (S) reported first-quarter 2012 earnings Wednesday. Revenue grew 6% compared to the first quarter of 2011, driven by higher average revenue per user, as subscribers continue to opt for smart phones tied to higher-priced data plans. The company sold over 1.5 million Apple (AAPL) iPhones, and we think that adding the phone to its lineup, though expensive, has allowed the company to compete with AT&T (T) and Verizon (VZ). A whopping 86% of Sprint platform post-paid phone sales were smartphones, and Sprint now has 69% of its postpaid customers using smartphones. We think this will continue to drive revenue growth as more customers opt for unlimited, premium data plans. Our fair value for Sprint remains unchanged. << Our … Read more

Sprint’s Changes Are a Step in the Right Direction, But They Don’t Change our Fair Value

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As you may already know, Apple (AAPL) recently released the new iPhone 4S, and Sprint (S) is now available as a carrier. Thanks to a combination of Steve Jobs’ passing and a 4S instead of a 5, many investors wrote off the new iPhone as a bust. Given that Sprint had just signed an enormous $20 billion deal with Apple to buy 30.5 million units, several analysts downgraded Sprint and the stock immediately sold off, almost down to $2 per share. Management admitted the deal may eat up around $1 billion in free cash flow, but they, as do we, think the investment is worthwhile. We think it’s time for naysayers to stop doubting the iPhone and accept that it is the premier … Read more

Sprint: A Bet on Clearwire and Lightsquared as Much as the Actual Company

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Sprint (S) shareholders have been on an absolute rollercoaster this year. For a brief period of time, a strong first quarter propelled shares to over $6, but the broader market sell-off and a lack of profitability brought shares down to the $3 range where they hover now. There was a small pop when the rumor broke that they would begin carrying Apple’s (AAPL) i-Phone 5 in mid-October, but shares came tumbling back down. Ultimately, Sprint is the smallest of the three major national carriers, both by number of customers and actual service coverage. With the ATT (T) – T-Mobile deal still in limbo, Sprint could end up being the only low-cost provider of nationwide service. Or, they won’t be. Either way, … Read more

Our Thoughts on the Widespread Launch of 5G Services

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Image Shown: The evolution of wireless networks and telecommunications technology over the years. Image Source: Intel Corporation – November 2019 State of 5G Presentation  By Callum Turcan The rollout of 5G telecommunication networks is upon us and we want to draw our members’ attention to some of the key companies with meaningful exposure to this space. Many are excited about what opportunities 5G technology could enable. Background On July 23, AT&T Inc (T) announced its 5G network in the US was operational nationwide and that effective August 7, both consumers and businesses with certain packages would have 5G access “at no additional cost” which included customers with AT&T Unlimited Starter, Extra, Elite, AT&T Business Unlimited Web-Only and Starter wireless plans. … Read more

Salesforce Has Room to Run

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Image Source: Salesforce Inc – Fourth Quarter of Fiscal 2022 IR Earnings Presentation By Callum Turcan Salesforce Inc (CRM) was founded in 1999 as software-as-a-service (‘SaaS’) company built around customer relationship management (‘CRM’) software, initially a version created by its co-founders Marc Benioff, Parker Harris, Frank Dominguez, and Dave Moellenhoff. The firm is headquartered in San Francisco, California. The company offers software that assists its customers with marketing, customer service, sales, digital commerce, business development, collaboration, analytics, recruitment, and numerous other activities. These offerings aim to improve workplace productivity by streamlining certain functions and automating others. Salesforce provides a comprehensive suite of software solutions designed for businesses and government entities across its Customer 360 platform, while using analytics and AI … Read more

Microsoft Soars, Strong Revenue Growth Continues Unabated

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Image Shown: Microsoft Corporation put up a solid fiscal third quarter earnings report and we continue to be big fans of the name. Image Source: Microsoft Corporation – Power Point Earnings Presentation Covering the Third Quarter of Fiscal 2022 By Callum Turcan On April 26, Microsoft Corporation (MSFT) reported third quarter earnings for fiscal 2022 (period ended March 31, 2022) that beat both consensus top- and bottom-line estimates. Shares of MSFT jumped higher by ~4%-5% in afterhours trading on April 26 as investors cheered on the good news and its promising near term outlook. Microsoft’s cloud-oriented products and services were a bright spot in the fiscal third quarter and underpinned its impressive pricing power. The firm was able to stay … Read more

Sprint, Dish, Clearwire, and SoftBank: The Saga Continues

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Key Takeaways: ·        The entire Sprint/Clearwire/Dish/SoftBank situation is very complicated. ·        We believe SoftBank’s offer makes more sense for Sprint’s near-term future. ·        However, we like the well-rounded package that a combined Sprint/Dish entity would be able to offer consumers over the long haul, and we tend to have faith in skilled managers like Dish’s CEO Ergen. ·        In any case, we think the saga will eventually result in a winner’s curse—whoever wins the battle for Sprint will likely have paid too much! ·        Ideas o       One industry in particular would be highly in favor of SoftBank’s deal with Sprint—the networking equipment makers. If Sprint receives a huge capital infusion from a SoftBank deal, network upgrade spending would accelerate. Cisco (CSCO) is our favorite fundamental idea … Read more