3 Reasons to Buy T-Mobile Stock

T-Mobile (NASDAQ: TMUS) has connected with both customers and investors as it integrates Sprint's assets from its merger last spring. With its expansion, T-Mobile took a huge step in closing the size gap with its larger rivals, AT&T (NYSE: T) and Verizon (NYSE: VZ). As that growth continues, investors looking to profit from T-Mobile's success should focus their attention on three key factors: 5G, licensed spectrum, and growth.

Most investors know that 5G will drive T-Mobile's immediate future. Along with AT&T and Verizon, it serves as one of only three providers of 5G service in the U.S.

Both T-Mobile and its peers have each spent tens of billions of dollars constructing such a network. In 2020 alone, T-Mobile spent more than $11 billion on purchases of property and equipment. An outside competitor will likely not match this level of spending merely to become another 5G provider. Hence, 5G will probably remain an oligopoly dominated by three companies.

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Source Fool.com