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Why AT&T (T), Verizon (VZ), Sprint (S), T-Mobile (TMUS) Were Thrashed In November

AT&T Inc. (NYSE:T), Verizon Communications Inc. (NYSE:VZ), Sprint Corporation (NYSE:S) and T-Mobile US Inc (NYSE:TMUS) have lost a combined market capitalization of $45 billion in the month of November, Dominic Chu reports for CNBC’s Tech Bet.

“There is a shift happening in the telecom market. In the month of November, the combined market value of AT&T, Verizon, Sprint and T-Mobile dropped a whopping $45 billion,” Chu said.

According to Chu, this drop in value for AT&T Inc. (NYSE:T), Verizon Communications Inc. (NYSE:VZ), Sprint Corporation (NYSE:S) and T-Mobile US Inc (NYSE:TMUS) may be connected to the price wars currently raging in this industry.

Chu’s guest, Mike Prospero, agrees with this assessment. According to the Reviews Editor at Tom’s Guide, investors of AT&T Inc. (NYSE:T), Verizon Communications Inc. (NYSE:VZ), Sprint Corporation (NYSE:S) and T-Mobile US Inc (NYSE:TMUS) are realizing that these companies are pressured to offer competitive prices or lose subscribers to their rivals.

He said that T-Mobile is appearing as the most combative among these companies in the price wars although rivals like Sprint with its new half-off billing offer are also fighting tooth and nail.

AT&T, is T a good stock to buy, Verizon, is VZ a good stock to buy, Sprint, is S a good stock to buy, T-Mobile US, is TMUS a good stock to buy, Dominic Chu, Mike Prospero, Market Capitalization, November,

This isn’t exactly the first time that this observation has been made. In recent report, Alex Sherman of Bloomberg said that margins at AT&T Inc. (NYSE:T) and Verizon Communications Inc. (NYSE:VZ) are being squeezed tight because of competition against each other and with Sprint Corporation (NYSE:S) and T-Mobile US Inc (NYSE:TMUS).

Nonetheless, like Sherman, Prospero is of the opinion that these competitive prices and hence lower margins are not going to be the norm in this space for AT&T Inc. (NYSE:T), Verizon Communications Inc. (NYSE:VZ), Sprint Corporation (NYSE:S) and T-Mobile US Inc (NYSE:TMUS) as all carriers will have to improve their networks. Companies like the telecom giants will need to spend, thus earn, to develop their systems and networks.

By the end of the third quarter, Cliff Asness’ Aqr Capital Management reported about 4.55 million AT&T Inc. (NYSE:T) shares. By the end of the same period, Warren Buffett’s Berkshire Hathaway reported owning about 15 million Verizon Communications Inc. (NYSE:VZ) shares. Meanwhile, John Paulson’s Paulson & Co reported about 64.11 million Sprint Corporation (NYSE:S) shares and about 15.02 million T-Mobile US Inc (NYSE:TMUS) shares.

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