Sprint (NYSE:S) reported mixed news in its earnings today, though investors seem to have decided that the good outweighed the bad, as the stock was up over 11% by market close. Cost improvements allowed it to reduce its net loss this quarter to $151 million, and revenue came in above expectations. Operating income was also at its highest point in 7 years. The bad news however was that the company saw a net loss of about 470k wireless subscribers this quarter, compared to a significant gain in the same quarter last year.

In this segment from Tuesday's Tech Teardown, host Erin Kennedy and Motley Fool tech and telecom bureau chief Evan Niu discuss some of the contributing factors to the net subscriber loss, and they also take a look at Sprint's "Framily" initiative. The plan works like a normal family plan, but allows customers to include friends as well, up to ten people, which allows customers increased access to cost savings normally only available through family members. The plan added 1 million subscribers for Sprint in its first 40 days, and is now up to nearly 3 million. Evan discusses why the plan has been a big win for subscribership, but has also had a negative impact on average revenue per user.

Are you ready to profit from this $14.4 trillion revolution?
Let's face it, every investor wants to get in on revolutionary ideas before they hit it big. Like buying PC-maker Dell in the late 1980s, before the consumer computing boom. Or purchasing stock in e-commerce pioneer Amazon.com in the late 1990s, when it was nothing more than an upstart online bookstore. The problem is, most investors don't understand the key to investing in hyper-growth markets. The real trick is to find a small-cap "pure-play" and then watch as it grows in EXPLOSIVE lockstep with its industry. Our expert team of equity analysts has identified one stock that's poised to produce rocket-ship returns with the next $14.4 TRILLION industry. Click here to get the full story in this eye-opening report.

Erin Kennedy has no position in any stocks mentioned. Evan Niu, CFA has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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.

Compare Brokers