Investors fled from Verizon, AT&T, T-Mobile and Sprint, dumping their stocks on the market, as financial analysts showed concern about the current wireless price wars. It's a great time for consumers to switch wireless carriers and get a killer deal for consumers, but investors are deeply worried about long-term profitability.
Since mid-November, the four major US wireless carriers lost $45 billion in total market value, according to the Wall Street Journal. The sudden volatility in the stock market stems from Verizon and AT&T feeling pressure from T-Mobile and Sprint, with a fierce war underway. Other reports revealed Sprint dropped a whopping 16 percent, T-Mobile slid 10 percent, AT&T lost five percent and Verizon dropped six percent last week.
To end the current stock volatility, at least one carrier will need to shift focus back on profits instead of cutting prices - or if regulators begin to warm up to the idea of industry mergers.