This is a poorly performing year for telecom stocks. Stocks sold off on three occasions. First, it fell a few months ago on worries that SpaceX (SPCX) would acquire a telecom firm to enter the market.
In the last few months, 10-year Treasury bonds (IEF) and 30-year Treasury (TLT) yields rose sharply. Markets punished firms that have high debt on their balance sheet. That hurt telecom stocks.
Last Friday, SpaceX acquired 600 MHz spectrum. The acquisition of low-band spectrum from Grain Management for around $8 billion shook up telecom stocks. AT&T (T), Verizon Communications (VZ), Charter (CHTR), and T-Mobile (TMUS) shares fell. Conversely, American Tower (AMT) and Crown Castle (CCI) bounced from the one-year downtrend.
Markets are pricing in an increase in demand for towers to carry the mobile network signals.
T-Mobile stock lost 13.3% on October 9, down 9.2% last week. Even though SpaceX might get 1% of the market share, it punished TMUS stock. A new competitive threat for the firm adds to its woes. Prices for mobile subscriptions are falling. Firms need to offer more attractive smartphone subsidies to win customers.
Apple’s (AAPL) expensive iPhone 18 Pro and Duo devices do not help. Their price tag might deter consumers from upgrading. Instead, they might shop for the telecom firm that provides the cheapest subscription rate.
