T-Mobile is facing significant challenges ahead, as indicated by the recent downgrade of its shares by Brandon Nispal, an analyst with KeyBanc. He has changed T-Mobile’s rating from Sector Weight to Underweight, anticipating that its stock will underperform compared to its industry rivals, AT&T and Verizon.
Historically, T-Mobile has shown strong growth, with its shares rising approximately 115% between July 2020 and July 2025, while AT&T saw a modest increase of about 22%, and Verizon faced a decline of around 21%. However, recent trends in 2025 suggest a reversal.
Before a notable decline in stock price following Nispal’s comments, T-Mobile’s shares had increased by just 6.9% this year, compared to 24% for AT&T and 7.7% for Verizon. The negative market reaction led to a decrease in T-Mobile’s valuation by $8.7 billion, despite the company still holding a substantial worth of $259 billion.
With new data, T-Mobile’s year-to-date gain has fallen to 3.96%, positioning it behind Verizon (4.63%) and well behind AT&T’s impressive 21.33%. Nispal attributes T-Mobile’s potential ongoing underperformance to the increasing trend of wireless providers offering bundled packages that integrate mobile, broadband, and pay-TV services.
Another challenge T-Mobile faces is its lack of a competitive fiber internet presence. In contrast, both AT&T and Verizon have strategically acquired fiber operations to enhance their service offerings.
Additionally, economic factors may strain T-Mobile’s performance, as higher churn rates showcase a consumer willingness to switch carriers for better deals, even among pre-paid options. Moreover, T-Mobile’s reputation has taken a hit.
Once celebrated as the “Un-carrier” for its consumer-friendly practices, the company now faces scrutiny and comparisons to its rivals, diminishing its standing in the eyes of the public.