T-Mobile stocks are downgraded over competition concerns

T-Mobile US Inc. TMUS,
-1.65%
According to KeyBanc Capital Markets analyst Brandon Nispel, the wireless market is experiencing intense competition that could further delay market share gains. He downgraded T-Mobile’s rating to overweight sector weight as of Sunday, in a note titled “Just Another Carrier.” According to Nispel, the cable industry could achieve the largest market share gains in the wireless market, and he expects cable operators to continue to gain market share. As for T-Mobile, he is concerned that “the migration from postpaid to prepaid represents an above-normal share of TMUS’ own net add-ons for postpaid phones, indicating lower-quality net add-ons.” Nispel argued that fellow wireless operators Verizon Communications Inc. VZ,
-0.04%
and AT&T Inc. T,
-0.06%
both are positioning their offerings competitively, with Verizon notably rolling out an attractive plan full of “differentiated” add-ons, such as free limited-time access to Walt Disney Co.’s DIS,
-0.50%
Disney+ streaming service and AAPL from Apple Inc.,
+1.86%
Apple Arcade gaming subscription. Furthermore, Nispel wrote that T-Mobile’s recent data breach “will probably take some wind out of the sails, just at a time when competitors are thriving”. Shares of T-Mobile have lost 2.2% in the past three months as the S&P 500 [S: SPX] won 7.3%.

.