T-Mobile Fell 11% on an Earnings Beat, Then Rebounded 6% the Next Day. Here's What's Going On.
Two trading sessions reached opposite conclusions about the same report. One of them had the better argument.
Overview
T-Mobile (NASDAQ: TMUS) investors saw some serious volatility last week. On Thursday, July 23, the wireless carrier reported second-quarter results in which profit came in ahead of Wall Street's expectations while revenue landed just shy of them. The stock fell 10.75% to $170.42. Then on Friday, July 24, shares turned around and rose 5.67% to close at $180.09.
Two wild sessions, one report, and a nearly $10-per-share gap between their closing verdicts. Clearly, investors are having a hard time making up their mind about the stock. With the stock now sitting about 31% below its 52-week high of $261.56, at about 14 times forward earnings, it's worth sorting out what is going on with the underlying business.
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Originally published at www.fool.com.