The Good and Bad of Sprint Corporation's Earnings

Sprint puts up solid results in some ways, but also loses a boatload of subscribers due to a service disruption. Overall, investors are still mostly pleased.

Apr 29, 2014 at 8:00PM

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.

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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.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

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David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't 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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