Has T-Mobile US Inc (TMUS) Hit Gold with “Binge On” Feature, Despite Critics?

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There has been a lot of critics when it comes to T-Mobile US Inc (NASDAQ:TMUS)’s new “Binge On” feature that allows mobile users to stream as much “Binge On” content as they like, without effecting their data usage. The way that T-Mobile does this, is that they limiit the quality of the videos so that they do not use as much data as say a super HD movie or 4K livestream. Instead they are optimized to work on that mobile device’s screen and provide decent quality without draining customers’ pockets.

“Binge On is our most disruptive Un-carrier move yet. It has literally changed the way millions of people are watching video – they’re watching more, more than twice as much as before, and most importantly, they’re watching without worrying about bigger bills or surprise overages!” said John Legere, president and CEO of T-Mobile, in a blog post. “Binge On is the Un-carrier solution to satisfy Americans’ growing appetite for mobile video – and the facts are telling us that customers love it!”

Binge On is completely “opt-in” meaning if a customer would rather watch the video in full HD, and allow it to count against their data, nothing changes. However, the company is finding that more and more of their customers prefer the less-quality, free-of-charge Binge On model to the more expensive HD versions. Support has been added for many different video networks including Univision NOW, Amazon Video, Fox News, and much more. Over 40 services are already included with more to come soon.

While this may not please everyone, especially the EFF, overall it’s good for customers and especially good for T-Mobile from a business standpoint. The stock is down 0.03% or $0.01 following the news, hitting $38.49 per share. Approximately 296,551 shares traded hands. TMUS shares have declined 2.53% since June 23, 2015 and are currently downtrending. It has outperformed the S&P500 by 8.49%.

From a total of 2 analysts covering T-Mobile US (NASDAQ:TMUS) stock, 0 rate it a “Buy”, 1 a “Sell”, and 1 a “Hold”. This means that 0 of the ratings are positive. The highest target price is $47 while the lowest target price is $40. The mean of all analyst targets is $42.50 which is 10.42% above today’s ($38.49) stock price. T-Mobile US was the topic of 6 analyst reports since August 3, 2015 according to the firm StockzIntelligence Inc. Vetr downgraded shares on September 22 to a “Sell” rating. Macquarie Research maintained TMUS stock in a recent report from August 3 with a “Neutral” rating.

The institutional sentiment decreased to 1.17 in Q2 2015. It’s down 0.26, from 1.43 in 2015Q2. The ratio turned negative, as 64 funds sold all their T-Mobile US Inc shares they owned while 97 reduced their positions. 50 funds bought stakes while 139 increased their total positions. Institutions now own 265.99 million shares which is 11.10% less than the previous share count of 299.19 million in 2015Q2.

Quaker Capital Investments Llc holds 18.91% of its total portfolio in T-Mobile US Inc, equating to 801,161 shares. Seminole Management Co. Inc. owns 5.00 million shares representing 8.88% of their total US portfolio. Moreover, Sarbit Advisory Services Inc. has 8.33% of their total portfolio invested in the company, equating to 1.36 million shares. The New York-based Andor Capital Management L.L.C. has a total of 7.82% of their portfolio invested in the stock. Tyrian Investments L.P., a New York-based fund reported 552,300 shares owned.

T-Mobile US, Inc., together with its subsidiaries, provides mobile communications services in the United States, Puerto Rico, and the U.S. Virgin Islands. The company offers voice, messaging, and data services in the postpaid, prepaid, and wholesale markets. It also provides wireless devices, such as smartphones, tablets, and other mobile communication devices, as well as accessories, which are manufactured by various suppliers. It offers services, devices, and accessories through its owned and operated retail stores, as well as through its Websites. T-Mobile US, Inc. also sells its devices and accessories to dealers and other third party distributors for resale through independent third-party retail outlets and various third-party Websites. The company provides its services under the T-Mobile and MetroPCS brands. As of December 31, 2014, it provided services to approximately 55 million customers. T-Mobile US, Inc. was founded in 1994 and is headquartered in Bellevue, Washington. T-Mobile US, Inc. operates as a subsidiary of Deutsche Telekom AG.

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