Why T-Mobile US Stock Dropped Today

T-Mobile stock fell 5% after Bloomberg reported that SpaceX plans to lease 80,000 cellphone towers and build a fourth major mobile telecommunications network to compete with T-Mobile, Verizon, and AT&T. SpaceX previously purchased spectrum for its Starlink Mobile service and plans to launch 15,000 direct-to-cell satellites. With SpaceX's 45% operating margins in its Starlink Connectivity business versus T-Mobile's 22% margins, the new competition threatens to further compress T-Mobile's profitability.