Sprint stock dives to a new 52-week low, Sprint denies hack responsibility
Sprint continued to suffer a rough ride on Wall Street as the beleaguered telecom operator witnessed its stock price dip nearly 10% on Monday after having dropped nearly 11% last week.
Sprint’s stock closed on Monday at a new 52-week low of $3.10 per share, dropping the company’s market capitalization to just over $12 billion. Japanese telecom giant Softbank, which controls around 80% of Sprint, in 2013 purchased a controlling stake in Sprint for $21.6 billion.
The latest drop was in the shadows of relatively robust performances posted by rivals Verizon Wireless, AT&T Mobility and T-Mobile US, which have all reported at least partial second-quarter results. Sprint is scheduled to release its fiscal Q1 results on Aug. 4.
Investors appear concerned over Sprint’s ability to maintain the modest operational improvements posted during its last fiscal quarter. The carrier managed to hold on to its No. 3 rank in the marketplace in terms of total connections on its network through the first part of the year, but most analysts expect the carrier to officially lose that position to T-Mobile US once Sprint reports operational results.
Sprint’s network enhancements are also coming under increased scrutiny as the carrier’s plans for more investments have the financial community on edge. Unfortunately, recent network testing conducted by RootMetrics that centered on 50 of the nation’s busiest airport locations found Sprint’s network lacking in coverage and capacity.
Fiat Chrysler hack link
Also impacting Sprint was a reported link between a recent hacking of some in-vehicle systems from automaker Fiat Chrysler, which led to the recall of 1.4 million vehicles, and Sprint’s cellular network. The hack, which was chronicled by Wired magazine, has been linked by some to Sprint’s Velocity telematics division that powers Fiat Chrysler’s system.
Sprint downplayed the link in a Bloomberg Business article, noting it was working with the automaker to improve security.
“This is not a Sprint issue but we have been working with Chrysler to help them further secure their vehicles,” Sprint spokeswoman Stephanie Vinge Walsh told Bloomberg Business.
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