TMUS Stock Heads For Worst Week In Six Years, But Why Does Goldman Sachs Still See 35% Upside?

T-Mobile CEO Mike Sievert discussed growth strategies at the Goldman Sachs Conference, highlighting double-digit customer lifetime value (CLV) increase in Q2 and positive performance against full-year postpaid account net additions outlook. He raised 2030 fixed wireless access guidance to 15 million customers and emphasized broadband, enterprise, and AI growth opportunities. The company is deploying AI to improve customer experience and plans significant investments in workforce programs. T-Mobi

A surge in cellular phone service prices contributed to a higher-than-expected US inflation rate, likely influencing the Federal Reserve's decision to raise interest rates. According to the Bureau of Labor Statistics, the consumer price index excluding food and energy rose 0.3% in August, driven partly by a 5.9% increase in wireless telephone services. Economists attribute this to price changes by major carriers like AT&T and T-Mobile.

Wells Fargo analyst Steven Cahall predicts SpaceX's wireless push will pressure telcos like AT&T, Verizon, and T-Mobile, while tower REITs and cable operators may benefit. SpaceX's Q2 revenue grew 66% YoY to $4.29B, and it gained 65MHz of EchoStar's spectrum. Tower REITs like American Tower, Crown Castle, and SBA Communications could see steady income, while Charter and Comcast may profit from Wi-Fi offload.

T-Mobile announced Jessica Uhl, a former Shell CFO, will replace current CFO Peter Osvaldik in February 2027. Uhl will join as CFO designate this month, with Osvaldik staying as an advisor until July 2027.

Deutsche Telekom and T-Mobile US appointed executives from AWS and GE Vernova, respectively, reflecting a trend of cross-sector hiring for AI expertise. Deutsche Telekom's new head of product and technology, Jan Hofmeyr, previously worked at AWS and Comcast. T-Mobile US appointed Jessica Uhl, who has extensive experience in the energy sector. These moves highlight the convergence of telecoms, tech, and industrial sectors in the AI infrastructure economy, with networking playing a crucial role. A

Verizon (VZ) surged 29% YTD, outperforming AT&T (T) and T-Mobile (TMUS). Verizon beat EPS estimates and raised guidance, while AT&T accelerated buybacks. T-Mobile's revenue grew 7.9%, but its stock fell 9%. Verizon's fiber expansion and dividend yield drove its performance, while T-Mobile faced subscriber growth challenges. The Communication Services ETF (XLC) is down 5% YTD.