T-Mobile stock has been in a steep downtrend since peaking at $268.90 in March last year. The sell-off accelerated today as concerns grew over competition from SpaceX, pushing the shares to a low of $148, their lowest level since December 2023. With the stock down sharply from its high, the question now is whether this sell-off is justified and whether a rebound is likely.
T-Mobile stock continues falling amid SpaceX competition risk
Investors have a long record of panicking whenever a big company is entering an industry. A few years ago, the concerns were that Amazon would disrupt all types of retail companies. While Amazon has taken a large market share, many retailers like Kroger, Walmart, and Costco have done well.
Investors have also dumped software companies, which they believe will be disrupted by artificial intelligence tools like Claude and ChatGPT. This situation is widely known as SaaSPocalypse.
The same fear is happening in the telecom industry today as investors react to SpaceX’s decision to acquire for a spectrum license that will make it a more direct competitor. The acquisition comes as the SEC nears a crucial vote that will benefit satellite companies like SpaceX and Amazon.
It also comes as SpaceX prepares to launch its most advanced Starlink satellites that will lead to faster download and upload speeds.
As such, investors fear that these developments will affect the revenue growth of legacy telecom companies. While this fear may be justified, there is a possibility that investors are overreacting. For one, it will take SpaceX a long time to have a major impact, especially in urban areas.
T-Mobile continues to gain market share
The most recent results showed that T-Mobile has continued growing faster than its top competitors. Its service revenue rose by 9% to $19 billion, with its postpaid segment making $15.9 billion.
The company’s net income rose modestly to $3.2 billion, with management pointing to higher UScellular merger costs and depreciation. Consequently, it decided to return $3.3 billion to investors through buybacks and repurchases. It is in the process of executing a $54.6 billion in shareholder returns over time.
T-Mobile’s annual revenue is expected to keep growing in the foreseeable future. Its annual revenue is expected to grow by 6.8% this year followed by $98.5 billion next year.
Most notably, T-Mobile has become relatively undervalued, with its forward price-to-earnings ratio of 13.8 being lower than the five-year average of 28.6.
TMUS stock price technical analysis
T-Mobile stock chart | Source: TradingView
Technicals suggest that the T-Mobile stock price has slumped in the past few months. It has moved from $268.90 in 2025 to the current $150. During this slump, it has dropped below the important support level of 61.8% Fibonacci Retracement level.
The stock is also about to form a death cross pattern as the 50-week and 200-week moving averages near their crossover. Also, it has continued to drop below major support levels.
Therefore, the stock will likely continue falling, potentially to the psychological level of $100. Over time, however, the stock will likely bounce back as investors start buying the dip.
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