February 23, 2012
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: Shares of prepaid wireless carrier Leap Wireless (Nasdaq: LEAP ) have jumped today by 10% after prepaid rival MetroPCS (NYSE: PCS ) reported strong quarterly earnings.
So what: MetroPCS added 197,000 net subscribers in the quarter, with its better-than-expected results lifting up peer Leap. Leap reported earnings last week, and saw net additions of 209,000 voice customers.
Now what: Both Leap's Cricket brand and MetroPCS have enjoyed upticks in smartphone adoption thanks in part to the rise of Android. Smartphone and data plan adoption has helped Leap boost its average revenue per user. MetroPCS also added that it believes the migration toward 4G LTE could potentially reduce customer churn going forward, while Leap just recently launched its 4G LTE network in Tucson.
Interested in more info on Leap Wireless? Add it to your watchlist by clicking here.