T-Mobile's Subscriber Growth Misses Estimates, Sinking Stock

Sentiment surrounding TMUS is still incredibly optimistic

Deputy Editor
Jan 7, 2022 at 9:32 AM
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The shares of T-Mobile Us Inc (NASDAQ:TMUS) are off 2.9% at $112.22 in pre-market trading, after the company revealed that its postpaid net subscriber additions for the fourth-quarter came in at 844,000, while subscribers for 2021 came in at 2.9 million. Analysts were expecting 868,000 subscriber additions for the quarter, and T-Mobile's rival AT&T (T) added 880,000 monthly subscribers, further weighing on the stock. 

TMUS spent the second half of 2021 in selloff mode, with its two major rally attempts losing steam near the $123 level. It's mid-December bounce was also rejected by the 80-day moving average, which helped guide the shares lower into the new year. While TMUS has put some distance between its current levels and its Dec. 1 annual low of $106.70, it still sports a year-over-year deficit of 12.1%. 

Analysts are still overwhelmingly optimistic on the stock. Of the 14 in coverage, 13 consider T-Mobile stock a "buy" or better. Plus, its 12-month consensus price target of $167.89 is a 50.1% premium to current levels. 

Options players have taken a similar stance. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), TMUS' 10-day call/put volume ratio of 4.00 stands higher than 85% of readings from the past 12 months. This means long calls have rarely been more popular in the past year. 

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