Why Sprint's Shares Fell 16% Last Month
Shares of veteran telecom Sprint (NYSE: S) fell 16.1% in January 2020, according to data from S&P Global Market Intelligence. The stock was already trending lower due to the uncertain future of Sprint's proposed merger with T-Mobile US (NASDAQ: TMUS) when the company presented a mixed third-quarter earnings report.
The T-Mobile/Sprint deal has been stuck in legal limbo since 2018. The two companies stated their case for this deal to District Judge Victor Marrero near the middle of January, and Sprint's stock took another haircut as several analysts placed the probability of a favorable outcome at 50% or less. Judge Marrero pledged to deliver his verdict "as quickly as possible," but the court has yet to deliver a final statement.
In the third-quarter report, Sprint showed a smaller net loss than expected although revenue came in 2% below analyst estimates.
Source Fool.com
