Yahoo Finance Here's How Much a $1000 Investment in T-Mobile Made 10 Years Ago Would Be Worth Today
How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in T-Mobile (TMUS) ten years ago? It may not have been easy to hold on to TMUS for all that time, but if you did, how much would your investment be worth today?
T-Mobile's Business In-Depth
With that in mind, let's take a look at T-Mobile's main business drivers.
Founded in 1994 and headquartered in Bellevue, WA, T-Mobile US, Inc. is a national wireless service provider. The company offers its services under the T-Mobile, Metro by T-Mobile and Sprint brands. T-Mobile, through its subsidiaries, provides wireless services for branded postpaid and prepaid, and wholesale customers.
The company was formed after the merger of T-Mobile USA Inc. and MetroPCS Communications Inc. Deutsche Telekom AG was the owner of the former T-Mobile USA Inc. Under the terms of the business combination with MetroPCS, Deutsche Telekom received shares of common stock representing a majority ownership interest in T-Mobile in exchange for its transfer of all of T-Mobile USA’s common stock.
The company offers mobile voice, messaging and data services in the postpaid, prepaid and wholesale markets. T-Mobile is extensively deploying 5G and 4G LTE (Long-Term Evolution) networks. It also provides wireless devices, such as smartphones, tablets and other mobile communication devices and accessories manufactured by various suppliers. T-Mobile’s business largely depends on its “Un-carrier Value Proposition”, which aims to enhance customer satisfaction by means of providing latest products at cheaper rates and uncomplicated terms of conditions.
T-Mobile mainly reports under the following two segments.
Service (82.1% of total revenues in first-quarter 2024): Includes wireless communication services to branded postpaid and branded prepaid customers through a variety of service plan options.
Equipment (16.6%): Includes sale of devices to dealers and third-party distributors for resale through independent third-party retail outlets; while the balance accounts for Other (1.3%).
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For T-Mobile, if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in June 2014 would be worth $5,060.82, or a 406.08% gain, as of June 4, 2024, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 174.57% and the price of gold went up 81.38% over the same time frame.
Going forward, analysts are expecting more upside for TMUS.
T-Mobile continues to boast a leadership position in the 5G market. It's 5G network covers 98% of Americans, or around 330 million people in the country. The company inked a definitive agreement to acquire U.S. Cellular’s wireless operations, along with 30% of its spectrum assets. The transaction is likely to facilitate a competitive market with increased options and enable T-Mobile to expand its fast-growing home broadband and fixed wireless offerings. Healthy demand for postpaid services is a tailwind. However, the highly competitive and saturated U.S. telecom market lowers its growth potential. The residual value of the surrendered phones, which the companies look to sell in other markets, may induce liquidity risk if the plan falls apart. The rising debt burden negatively impacts investors' confidence.
The stock is up 6.60% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 7 higher, for fiscal 2024. The consensus estimate has moved up as well.
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T-Mobile US, Inc. (TMUS) : Free Stock Analysis Report
