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Invest in SpaceX's Future? Consider T-Mobile Stock Today

Wesley ParkMonday, Feb 10, 2025 10:05 am ET
3min read



As an investor, you might be tempted to jump on the SpaceX bandwagon, given its recent successes and the promise of future innovations. However, before you make that leap, consider this: T-Mobile (TMUS) stock might be an even better bet for your portfolio. Here's why:

1. T-Mobile's 5G Expansion: T-Mobile is aggressively expanding its 5G network, aiming to add up to 6 million new postpaid subscribers in 2025. This expansion is driven by the company's commitment to enhancing its 5G network with next-gen advancements like Massive MIMO and millimeter-wave spectrum. By staying ahead of the curve in 5G technology, T-Mobile can maintain its competitive edge and attract tech-savvy customers who value high-speed connectivity.
2. Rural Coverage Expansion: T-Mobile is also committed to improving rural connectivity, aiming to bridge the digital divide and tap into an underserved market with significant growth potential. By expanding its rural coverage, T-Mobile can attract customers who previously had limited access to high-speed internet, increasing its customer base and revenue. Additionally, improving rural connectivity can open up new opportunities for T-Mobile in areas like IoT, smart cities, and other emerging technologies that rely on robust network infrastructure.
3. Strong Financial Performance: T-Mobile's financial performance has been impressive, with equipment sales increasing 13% year-over-year to $4.7 billion in the fourth quarter, driven by heightened phone upgrades and the introduction of higher-priced devices. Service revenue is projected to grow approximately 5% year-over-year, reaching nearly $69.5 billion for the year, bolstered by a significant postpaid phone gain of 903,000 subscribers, which accounted for about 46% of total growth among the major U.S. carriers. The rise in postpaid phone average revenue per user (ARPU) by 2% reflects the successful adoption of higher-end plans and supports a positive outlook for continued growth in subscriber numbers and revenue.
4. Analyst Ratings and Price Targets: Analysts have a positive outlook on T-Mobile's stock performance, with an average price target of $242.30, indicating a potential increase of 8.32% from the current stock price. The consensus among analysts is to rate T-Mobile as a "Strong Buy," reflecting their confidence in the company's long-term growth prospects.



In conclusion, while SpaceX may hold promise for the future, T-Mobile stock offers a more immediate and tangible opportunity for investors. With its aggressive 5G expansion, rural coverage improvements, strong financial performance, and positive analyst ratings, T-Mobile is well-positioned to deliver significant returns for shareholders. So, if you're looking to invest in the future of wireless technology, consider T-Mobile stock today.
Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.