Sprint (S), Clearwire (CLWR) Shares Plunge as Comments from Hesse, Euteneuer Weigh
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Traders in shares of Sprint (NYSE: S) and Clearwire (Nasdaq: CLWR) seem to be looking a little confused Friday. Rightfully so...
Both stocks have been making extremely violent swings throughout the session amid earlier comments from a number of execs at the Sprint Nextel Business Update event.
Buyers stepped up this morning as Sprint CEO Dan Hesse began outlining details for the acceleration of its network expansion plans and the roll-out of its 4G LTE network. The stock surged as much as 12.6 percent, marking an intraday high around 10:30am ET.
Investors began taking profits as Hesse brought up the iPhone. Although the comments made by the exec were seemingly positive, mention of the device may have reminded shareholders of the potentially massive costs to carry such a high-profile phone. Hesse said the device is key to taking Sprint to the "next level" in churn and noted his belief the Apple (Nasdaq: AAPL) product may be Sprint's most profitable product ever.
Sprint shares remained up about 4 percent until just before noon, at which time the company's CFO Joe Euteneuer suggested Sprint may access the capital markets in order to refinance. The stock plunged to as low as $2.65 just after the comment, triggering a volatility circuit breaker. Shares of Sprint last traded at $2.75, down 8.6 percent from Thursday’s close.
On the other side of the story, traders in Clearwire shares responded to comments from Hesse that Sprint may stop using Clearwire-compatible devices moving forward. After gapping about 7 percent higher at this morning's open, Clearwire shares are now down 33 percent to around $1.37. The stock was halted eight times as circuit breakers were triggered.
Both stocks have been making extremely violent swings throughout the session amid earlier comments from a number of execs at the Sprint Nextel Business Update event.
Buyers stepped up this morning as Sprint CEO Dan Hesse began outlining details for the acceleration of its network expansion plans and the roll-out of its 4G LTE network. The stock surged as much as 12.6 percent, marking an intraday high around 10:30am ET.
Investors began taking profits as Hesse brought up the iPhone. Although the comments made by the exec were seemingly positive, mention of the device may have reminded shareholders of the potentially massive costs to carry such a high-profile phone. Hesse said the device is key to taking Sprint to the "next level" in churn and noted his belief the Apple (Nasdaq: AAPL) product may be Sprint's most profitable product ever.
Sprint shares remained up about 4 percent until just before noon, at which time the company's CFO Joe Euteneuer suggested Sprint may access the capital markets in order to refinance. The stock plunged to as low as $2.65 just after the comment, triggering a volatility circuit breaker. Shares of Sprint last traded at $2.75, down 8.6 percent from Thursday’s close.
On the other side of the story, traders in Clearwire shares responded to comments from Hesse that Sprint may stop using Clearwire-compatible devices moving forward. After gapping about 7 percent higher at this morning's open, Clearwire shares are now down 33 percent to around $1.37. The stock was halted eight times as circuit breakers were triggered.
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