T-Mobile US shares declined 2.2% on Friday, closing at $197.39 and ending a three-day advance. The drop occurred despite a positive session for major indices, leaving the stock trailing both the broader market and its primary telecommunications competitors. Trading volume was slightly below the 50-day average.
Focus on Financials and Forward Guidance
Investor attention is now squarely on the company's upcoming fourth-quarter and full-year 2025 earnings report, scheduled for release before the market opens on Wednesday, February 11. The report will be accompanied by a capital markets day, where management is expected to provide updates on long-term objectives and capital allocation strategies. Wall Street consensus, according to MarketBeat, anticipates earnings per share of approximately $2.13 on revenue of $24.27 billion for the quarter.
Key metrics analysts will scrutinize include postpaid phone net subscriber additions, churn rates, and the performance of the fixed wireless home broadband service. Any revisions to financial guidance, particularly concerning cash flow or capital expenditures, are likely to influence the stock's direction in the near term.
Marketing Push and Legal Challenge
Concurrently, T-Mobile is launching a new brand campaign centered on the "Big Game," marking its 13th consecutive year of advertising during the event. The company has also deployed engineering teams in the Bay Area to manage anticipated network traffic surges and ensure public safety communications remain operational, utilizing technology like 5G network slicing.
However, the company faces a headwind from a lawsuit filed by rival Verizon, which alleges false advertising regarding savings claims for customers who switch carriers. This legal dispute highlights the ongoing competitive and regulatory risks within the sector.
Friday's pullback places T-Mobile shares roughly 29% below their 52-week high. As markets reopen, the focus will be on whether the stock can find stability before Wednesday's pivotal updates, which have the potential to trigger significant price movement.
