As AT&T prepares to report its first-quarter earnings later today, it could come under more pressure from investors to show financial progress. The pressure is coming at a time when AT&T is investing $18 billion to purchase AWS-3 spectrum, $48.5 billion to buy DirecTV and billions more to move into the Mexican wireless market.
Investors last week dumped the stocks of Verizon Communications, AT&T, Sprint and T-Mobile US in a hurry amid growing concerns that the carriers' wireless pricing battles are unsustainable long term and that rising costs of spectrum will combine with the price war to drive down carriers' profitability.
T-Mobile US is selling stock in an offering that is likely going to raise $1 billion. The carrier indicated it will use the proceeds for capital expenditures and spectrum purchases beyond what it may acquire in the ongoing AWS-3 auction.
It might be difficult for some to believe, but BlackBerry's stock is out of the doldrums and is up more than 50 percent this year as investors have started to believe in CEO John Chen's turnaround strategy.
T-Mobile US said it plans to sell new shares in a move that could raise as much as $1.8 billion. The company could use the cash to acquire spectrum in upcoming auctions.
AT&T sold 7.5 percent of its stake in América Móvil, netting the company about $564 million and returning AT&T's total stake in the telecom giant to its historic level of around 9 percent.
Top Clearwire executives appear set to rake in millions of dollars from stock payments if Sprint Nextel's bid to buy the roughly 50 percent of Clearwire it does not already own gets approved by Clearwire's minority shareholders.
MetroPCS shares have fallen 27 percent since the company's transaction with T-Mobile USA was announce in October, noted a Wall Street Journal article. Although that decline could open the door for other companies to step in and make their own counterbids for MetroPCS, the list of potential suitors appears to be notably short.
Investors and financial analysts generally agree that Sprint Nextel will need to increase its $2.90 per share offer, or $2.1 billion, to buy the 49 percent of Clearwire that it doesn't already own. Yet many analysts think Sprint will ultimately seal the deal because Clearwire's vast spectrum holdings are too valuable to leave on the table.
Research In Motion's stock enjoyed a boost after investment bank Goldman Sachs upgraded the stock from "neutral" to "buy," bullish on the prospects of RIM's forthcoming BlackBerry 10 platform.