SBA Communications falls behind tower industry rivals

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SBA ($NASDAQ:SBAC) Communications Corp. (NASDAQ: SBAC) is a leading independent owner and operator of wireless communications infrastructure in North, Central and South America. SBA Communications stock lagged the rest of the tower industry Thursday, falling behind rivals such as American Tower Corporation (NYSE: AMT), Crown Castle International Corporation (NYSE: CCI), and SBA Communications Corp. (NASDAQ: SBAC) . One reason for SBA Communications underperformance may be the company’s recent guidance reduction. Another factor that may be weighing on SBA Communications stock is the company’s high level of debt. This high level of debt could make the company more vulnerable to a downturn in the economy or the wireless communications industry.

Despite these challenges, SBA Communications remains a leading player in the wireless communications infrastructure market. The company’s strong presence in key markets, such as the United States, Brazil, and Mexico, gives it a competitive advantage.

Market Price

SBA Communications has been in the news a lot lately, and most of the news has been positive. On Friday, the stock opened at $291.4 and closed at $290.7, up by 1.0% from the last closing price of $287.9. However, the company has fallen behind its rivals in the tower industry.

VI Analysis

SBA Communications is a low risk investment in terms of financial and business aspects, according to VI Risk Rating. The company’s fundamentals reflect its long term potential. However, VI App has detected 1 risk warnings in non financial. Register with us to check it out.

VI Peers

The U.S. tower industry is highly competitive with three dominant firms, SBA Communications Corp, American Tower Corp, and Crown Castle International Corp, accounting for more than 80% of the market. These firms have been in intense competition for market share since the early 1990s. The industry has seen consolidation through acquisitions and joint ventures, but the top three firms have remained the dominant players.

Equinix Inc is a newer entrant to the tower industry and has quickly become a major competitor. The company has a different business model than the traditional tower firms and focuses on providing colocation and interconnection services. Equinix has been successful in attracting major customers such as AT&T, Verizon, and Sprint.

– American Tower Corp ($NYSE:AMT)

American Tower is a leading independent owner, operator and developer of wireless and broadcast communications real estate. The company’s global portfolio includes more than 170,000 communications sites, including approximately 80,000 in the United States, approximately 70,000 in Europe, the Middle East and Africa, and approximately 20,000 in Latin America.

– Crown Castle International Corp ($NYSE:CCI)

Crown Castle International Corp is a publicly traded real estate investment trust (REIT) that owns, operates, and leases communications towers and other infrastructure in the United States. The company’s towers are used by wireless service providers to transmit voice and data traffic. Crown Castle also provides small cell solutions, which are used to increase capacity and coverage for wireless service providers. As of December 31, 2020, the company owned approximately 40,000 communications sites.

– Equinix Inc ($NASDAQ:EQIX)

Equinix, Inc. is a leading global provider of data center and interconnection solutions, with a market cap of $47.86B as of 2022. The company offers a variety of services including colocation, interconnection, and cloud exchange. Equinix operates in over 50 data centers across the globe, providing a reliable and secure platform for companies to operate their businesses. The company’s customer base includes a wide range of businesses from small businesses to large enterprises.

Summary

SBA Communications is a leading provider of wireless communications infrastructure in North, Central and South America. SBA Communications has been investing heavily in recent years to expand its tower portfolio. SBA Communications has also been active in the development of new towers. The company has plans to continue its tower expansion in the coming years.