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Digging into T-Mobile ($TMUS)
Long-Term Analyses

Digging into T-Mobile ($TMUS)

TMUS Long-Term Analysis

Rick Sullivan 🦆's avatar
Rick Sullivan 🦆
May 01, 2025
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Digging into T-Mobile ($TMUS)
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Hey!

Today we're looking at T-Mobile TMUS 0.00%↑ , basically one of the big phone companies you see everywhere, known for shaking things up with their "Un-carrier" moves. They just put out some strong growth numbers showing they're still grabbing market share, but the stock's been lagging a bit lately, hanging out about 10% below its recent highs as of late April 2025. Let's dig in and see what the numbers tell us about its long-term prospects.

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Quick Summary (TL;DR)

  • T-Mobile's killing it with customer growth, especially valuable postpaid customers, and their 5G network is top-notch. 🟩🟩

  • But the stock's stalled, probably because folks are watching their high debt load 🟥 and the huge task of swallowing U.S. Cellular, which brings significant integration risk 🟨.

  • Profitability metrics aren't quite best-in-class yet 🟨, and competition is fierce 🟨.

Breaking Down the Business

So, what's T-Mobile? They're one of the big three wireless carriers in the U.S., alongside Verizon and AT&T. You know, the guys who provide the signal for your smartphone. T-Mobile really made a name for itself by being the 'Un-carrier' – ditching hated things like long-term contracts, surprising fees, and confusing plans. They were the first to include taxes and fees in the advertised price and threw in perks like free Netflix. This forced the other guys to get better, which honestly helped all of us consumers.

Their big advantage right now is having a really strong 5G network, particularly using what's called 'mid-band' spectrum. Think of it like this: some 5G is super-fast but only works over short distances (like inside a stadium), other 5G reaches far but isn't much faster than old 4G. Mid-band is the sweet spot – good speed and good coverage. T-Mobile got a head start building this out, and they're already rolling out the next upgrade, "5G Advanced." This network leadership is a key reason they keep attracting customers.

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