T-Mobile trades higher after Raymond James says the SpaceX threat is overstated

SpaceX acquired a nationwide low-band spectrum license portfolio for $8 billion, aiming to challenge major U.S. telecom carriers with Starlink Mobile. The deal, pending FCC approval, includes 14 MHz of 800 MHz band spectrum. SpaceX plans to combine this with its Gen2 satellite constellation for mobile broadband service, potentially impacting AT&T, Verizon, and T-Mobile. Full commercial service is expected by 2035 at the earliest, according to observers.

T-Mobile US (TMUS) stock rose 2.9% to $152.92 after Raymond James upgraded it to Outperform with a $170 price target, citing SpaceX's acquisition of spectrum as overreacted to. Analysts highlighted T-Mobile's spectrum and 5G infrastructure as competitive advantages. The rally followed a sharp decline to near its 52-week low, driven by bargain hunting and positive ratings from other firms. The broader market remained flat, making TMUS's gain company-specific.

Amazon is reportedly in talks to acquire Descartes AI for around $7B. Descartes, founded in 2023, develops AI optimization software. IonQ agreed to buy Elisity for up to $1.3B in stock, expanding its cybersecurity platform. T-Mobile's stock fell 13% after SpaceX's spectrum acquisition plans were announced, raising competition concerns.

T-Mobile US (TMUS) gained premarket momentum after Raymond James upgraded its rating to Outperform, citing overstated competition concerns. The company has a 2.66% dividend yield, a 34.4% undervaluation according to GF Value, and a GF Score of 72. Insiders have sold significantly more shares than they purchased over the past year, while guru activity is mixed.

T-Mobile (TMUS) stock fell 13.27% on Friday, its worst single-day decline since 2013, after SpaceX announced a deal to acquire 800 MHz spectrum from Grain Management, potentially becoming a fourth major U.S. mobile carrier. AT&T (T) and Verizon (VZ) also saw significant declines. SpaceX stock rose about 1%. The deal requires FCC approval. T-Mobile's CTO argued that spectrum ownership alone is not sufficient to compete in mobile communications.

T-Mobile US (TMUS) shares rose in premarket trading after Raymond James upgraded its rating to Outperform from Market Perform. The firm believes concerns about competition from SpaceX (SPCX) are overstated, according to analysts Frank Louthan and his team.