Leap Wireless Shares Plunged: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of low-cost wireless provider Leap Wireless International (NAS: LEAP) ran out of minutes today, and the stock plummeted 32% as a result.
So what: Earlier this week, Leap fell because competitor MetroPCS (NYS: PCS) reported weak earnings. But this time, it's Leap's own fault. The company reported a loss of $0.85 per share, exploding from only a $0.24-per-share loss last year. Broadband customers left in droves.
Now what: There isn't a lot of good news today for Leap investors. The company is trying to attract more profitable smartphone customers, but the transition isn't going quickly. Analysts aren't even expecting a profitable year in 2012. I wouldn't venture anywhere near the buy button on Leap Wireless's shares today.
Interested in more info on Leap Wireless? Add it to your watchlist.
At the time this article was published Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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