Sprint Nextel Corporation (S): Ignore The Buyout Talk, Can This Company Compete?

Third, Sprint Nextel Corporation (NYSE:S) is benefiting from its unlimited everything offerings, as 86.1% of the company’s postpaid subscribers bought smart-phones. While it’s true that smart-phones have higher subsidies, they also increase long-term revenue. A significant development in Sprint’s smart-phone strategy is the iPhone. Say what you want about Apple Inc. (NASDAQ:AAPL)’s device, but Sprint sold 1.5 million in the last quarter, and 43% were to new subscribers.

The bottom line is, Sprint has a lot of challenges today as a stand-alone company. It seems all but assured that the company will be bought. For investors, what you should do depends on your outlook. If you bought for a short-term trade and have profits, I would take them today. If you like the idea of a stronger Sprint Nextel Corporation (NYSE:S) (through Softbank), then hold on and see how things play out. However, if you think a combination of Sprint and Dish will be a real threat, I would say think again, the numbers just don’t look good. To keep up with what’s going on with Sprint, just add S to your personalized Watchlist on Fool.com today.

Chad Henage owns shares of Verizon Communications. The Motley Fool has no position in any of the stocks mentioned.

The article Ignore The Buyout Talk, Can This Company Compete? originally appeared on Fool.com.

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