- After slipping 7.4% yesterday, and trading flat for much of today, Sprint (NYSE:S) took the last hour to fall another 6%.
- At $3.74, it's at its lowest point in seven weeks (since Aug. 10). The moves are coming in the wake of two key catalysts: an extreme discount on getting new iPhones into customers' hands, and its decision to skip the broadcast incentive spectrum auction at a time of clogged airwaves.
- This is the "valley of darkness" for Sprint, analyst Roger Entner says, where it will live "for another year before improvements will be widely recognized by consumers.”
- The company will save some $9B by skipping the spectrum auction -- important, as cash burn speeds up -- though Sprint is already sitting on a heavy supply of unused spectrum. Now the key is putting it to work.
- Ultimately, Entner thinks some turnaround will happen: “There’s no way SoftBank (OTCPK:SFTBY) is going to let them go belly up." Wells Fargo's Jennifer Fritzsche thinks the onus is on getting those unused airwaves into service: “Sprint is still a show-me story, especially on the network side."
- Previously: Sprint confirms it'll skip spring broadcast airwaves auction (Sep. 28 2015)
- Previously: On eve of iPhone launch, Sprint offers $1/month plan (Sep. 24 2015)
- Previously: Evercore: Sprint, T-Mobile could merge network assets into a REIT (Sep. 22 2015)