Sprint’s Dipping Numbers Has Analysts Using the B-Word
Yesterday Sprint had a rough day on Wall Street as its shares took a bit of a beating after being downgraded by Sanford Bernstein and evaluated by analyst Craig Moffett. Taking a 4.5 percent dip to $2.76, the Now Network’s stock saw the biggest single day drop since December 14th 2011. Labeling the stock as underperforming, Moffett placed the blame on Sprint’s current debt, 4G limbo and pricey commitment to Apple’s iPhone.
To be clear, we are not predicting a Sprint bankruptcy,” he says. “We are merely acknowledging that it is a very legitimate risk. And notwithstanding a recent rally in Sprint shares, we believe that risk is rising.
Though he’s not predicting bankruptcy, it’s obvious that his firm holds influence over investors and their decision making. Moffett went on to say that Apple’s LTE iPhone is unlikely to work with Sprint’s network, which could further set the company back in its commitment to sell 25 to 30 million iPhones over four years. Whether you agree or disagree with Moffett’s claims, we’ll definitely have a much clearer picture of Sprint’s financial future once their LTE network is up and running. Until then, we’ll have to file this one under Spectrum Speculation.