Sprint’s Stock Finds New Life on iPhone 5 Announcement
Source: Google Finance
According to the Wall Street Journal, Sprint (NYSE:S) will begin selling the new version of the Apple (NASDAQ:AAPL) iPhone in October of this year. [1] A few weeks back, we noted that this deal could be a win-win situation for Sprint and Apple in a post titled A Sprint-Apple iPhone Deal Could be a Win-Win. We believe this will help put Sprint on the same footing as AT&T (NYSE:T) and Verizon (NYSE:VZ) that both already sell the iPhone and so can hopefully stem the drop in subscribers. Apple also benefits as it helps challenge Google’s (NASDAQ:GOOG) Android OS that is gaining rapid adoption by giving it access to Sprint’s roughly 45 million strong customer base.
After the announcement of this report, Sprint stock shot up by more than 10% while Apple’s stock was up nearly 5% on the highly anticipated iPhone 5 announcement.
Our $4.75 price estimate for Sprint stock is about 30% above market price while our $510 price estimate for Apple stock is about 35% above market price.
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See our complete analysis for Sprint stock here| for Apple stock here
Notes:- Sprint to Get iPhone 5, Wall Street Journal, August 24th, 2011 [↩]