T-Mobile US falls 13.3% after reports SpaceX bought low-band spectrum assets

What happened

T-Mobile US (TMUS) fell 13.3% on October 9, 2026, after reports that SpaceX acquired low-band or satellite spectrum assets, stoking investor concern about increased competition, according to Benzinga and The Motley Fool. Trading was heavy: the stock traded at 3.7 times its 20-day average volume and opened 9.2% below the previous close. The move came after those media reports and was much larger than the market and the Communication Services sector that day.

How big was the move

The stock closed at $148.58, a decline described by some outlets as the company’s worst one-day decline since 2013 and trading near levels last seen in December 2023. The session’s drop was 4.4 times a typical daily move for this stock and 12.4 percentage points worse than the Communication Services sector median, which fell 0.9% on the day. The S&P 500 rose 0.6% on October 9 and rose 1.1% over the last five sessions, underscoring that the decline was a large, mostly company-specific move. Over the last five trading sessions the stock fell 9.2%.

The technical picture

Technically, the stock sat below key moving averages: 10.9% below its 20-day moving average, 15.0% below its 50-day moving average and 22.0% below its 200-day moving average. The 50-day average is below the 200-day average, a sign of a weak longer-term trend. Momentum readings were weak: the Relative Strength Index (14 days) was 29, below 30, a level often called oversold. Price performance has deteriorated across time frames. The stock was 35.7% below its 52-week high, down 16.1% over one month, 21.1% over three months and 34.4% over one year, leaving it 50.1 percentage points behind the S&P 500 for the year. Volatility was elevated, at 48% annualized over 60 days, the highest reading of the past five years.

Fundamentals and valuation

For the four quarters through June 30, 2026, revenue was $92.19 billion, up 9.7% from a year earlier and roughly in line with the 9.5% growth recorded one quarter earlier. Diluted earnings per share were $9.55, with earnings per share falling 9.8% from a year earlier. Margins compressed: gross margin was 54.5% versus 63.6% a year earlier, and operating margin was 20.3% versus 23.1% a year earlier. Free-cash-flow margin was 16.6% and return on invested capital was 7.1%. The balance sheet showed net debt of 4.0 times EBITDA, and the company reduced its share count by 4.6% over one year.

Valuation measures looked relatively inexpensive against recent history. The stock traded at 15.6 times trailing earnings, the lowest reading of the past five years against a five-year median of 25.2 times earnings. Price to forward earnings was 13.6 times expected earnings and free-cash-flow yield was 8.7%. PromtFinance scores ranked Value at 82 (Strong) and Revisions at 88 (Strong), while Momentum was 28 (Very weak) and Growth was 57 (Neutral). The company’s market value was $175.53 billion as of the session.

Those contrasts matter for investors weighing the sell-off. The drop followed fresh competitive fears tied to spectrum ownership rather than a sudden deterioration in recent revenue growth, which remained near double-digit year-over-year. The stock’s low trailing multiple and strong value scores suggest some investors viewed the shares as attractively priced after the decline. At the same time, weak momentum and elevated volatility signal heightened near-term market risk.

Earnings and analyst expectations

T-Mobile’s most recent quarterly report on July 23, 2026, showed earnings per share of $2.99 against $2.59 expected, 15.4% above estimates, marking two consecutive quarters beating estimates. The average surprise over the last four reports was 7.0% above estimates, and the typical two-day reaction after recent reports was that the stock rose 0.2%. Analysts covering the stock numbered 54, with 80% rating the stock Buy and a consensus rating of Buy. The consensus price target was $231.60, 55.9% above the closing price on October 9. The next report is scheduled for October 28, 2026.

What to watch

• October 28, 2026: next earnings report date.
• Media and regulatory developments tied to spectrum transfers or SpaceX’s holdings, as reported on October 9 by Benzinga and The Motley Fool.
• Trading volume relative to the 20-day average and any persistent change in volatility from the 48% annualized over 60 days.
• Movements in net debt or any balance-sheet actions altering net debt of 4.0 times EBITDA.
• Analyst revisions to earnings or price targets following the reported spectrum news.