MetroPCS Shares Plunged Again: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: For the second time in three days, shares of MetroPCS (NYSE: PCS  ) slumped more than 10% in early trading and are down nearly that much as I write this. Investors just don't believe in the company enough to defy a broad market decline.

So what: Economic uncertainty has torched most stocks today, but MetroPCS is down more than three times the market's 3% pullback. Sellers seem to think the year's worth of growth that preceded the second quarter is now gone, never to return.

Now what: Does this mean AT&T (NYSE: T  ) and Verizon (NYSE: VZ  ) are the new old kings of telecom? For the time being, yes. They're the only two carriers with access to the iPhone, and that seems to be making all the difference. Do you agree? Disagree? Weigh in using the comments box below.

Interested in more info on MetroPCS? Add it to your watchlist.

Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team. He didn't own shares in any of the companies mentioned in this article at the time of publication. Check out Tim's portfolio holdings and Foolish writings, or connect with him on Google+ or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.

Motley Fool newsletter services have recommended buying shares of AT&T. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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  • Report this Comment On August 04, 2011, at 6:15 PM, GudDanMan wrote:

    I think for the moment, Apple is driving the future, and if a mobile phone company can't deliver an apple product with internet access, investors will not buy into their market nor their stock. While often the innevitable future seems quite certain, it happens that some other information, we can't see just yet, will change a scenario. Personally speaking I think that the days of small time carriers are over. They can't bring enough broad band to market on dynamic phones quick enough. This leaves only 2 guys who know how to do it, at&t and verizon wireless (which is really Vodafone/Verizon, hint hint) Stick with Vodafone, they will be the winners here.

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