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New Proof That Sprint Is Doomed

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By Douglas A. McIntyre Published
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The shares of Sprint-Nextel (NYSE: S) have been reeling all morning and have fallen by more than 7% to $2.50, not far above a 52-week low of $2.10. Wall St. has become more convinced by the day that the company is doomed. Sprint management said that Apple (NASDAQ: AAPL) iPhone sales were ahead of expectations, but did not say how much, which is likely to annoy already rebellious shareholders.

Revenue of the No.3 wireless carrier rose only 2% to $8.3 billion. Sprint had a net loss of $301 million. Beyond that, the company posts a large number of nearly useless financial tables in its earnings release which makes it difficult for investors to decode Sprint’s situation.

Sprint added nearly 1.3 million total net wireless subscribers, primarily driven by 304,000 net postpaid additions for the Sprint brand, net prepaid additions of 485,000 and net wholesale and affiliate additions of 835,000. That is not much compared to advances by AT&T (NYSE: T) Wireless and Verizon Wireless. The AT&T buyout of T-Mobile is in trouble, but not dead, Sprint is, if the merge goes through.

Douglas A. McIntyre

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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