Sprint Corp (NYSE:S) stock surged 8% today in what could only be described as a “what took so long?” moment. That is, S stock is rallying on news that Sprint is partnering with Pokemon Go developer Niantic to transform more than 10,500 Sprint stores, Boost Mobile and Sprint-RadioShack locations into PokeStops and Gyms.
Investors, it appears, are wildly enthusiastic about a game that may or may not have been just a summer phenomenon.
On Wednesday, Sprint announced its partnership with Niantic — and with Nintendo Co., Ltd (ADR) (OTCMKTS:NTDOY) by proxy of its investment in Niantic — in hopes of increasing foot traffic into Sprint’s stores.
Sprint’s new initiative not only transforms Sprint’s stores into battlegrounds for gyms, but will also offer a place for weary Poke trainers recharge their phones.
What’s more, the No. 4 wireless carrier in the nation is considering hosting tournaments and sweepstakes in the future, which sounds like maybe Niantic is hard at work on allowing players to battle/trade with each other.
Or maybe not.
“It’s one of the features we look at, but there’s no specific announcement,” according to Niantic CEO John Hanke.
Sprint CEO Marcelo Claure, though, “expect(s) a huge uptick in traffic”:
“This collaboration with Pokémon GO brings together two innovative, groundbreaking and creative brands that will offer Trainers greater accessibility and destinations to advance their game. Pokémon GO is one of the most popular mobile games in history, and now players will be able to visit Sprint, Boost Mobile and Sprint at RadioShack stores to collect Poké Balls, Potions, Eggs and Razz Berries to make them a top Pokémon GO Trainer. We will also provide charging stations in stores so Trainers never have to worry about losing power.”
However, Pokemon Go has waned in popularity since its July release. Today, Pokemon Go is barely in the top 10 on the Apple Inc. (NASDAQ:AAPL) App Store (it’s straddling the tenth position), it’s fallen to No. 119 in the charts for free downloads and it’s critical rating is a mere two-and-a-half stars.
The final blow? Pokemon Go wasn’t Apple’s iPhone game of the year … it wasn’t even in the top 10!
Players may once again fire up dusty Pokemon Go apps when the deal takes effect Dec. 12, as it’s also the same day that Niantic introduces new Pokemon into the fold. According to Hanke:
“We’ll put out more information to explain what’s coming. Not all Pokemon are created equal, and there are different families within the Pokemon universe. We’re bringing them out in a logical way.”
With S stock now north of 8.5% on the news, investors are betting big that Pokemon Go players will decidedly join the fray once more to weather the cold to one of Sprint’s thousands of locations where a Sprint employee will presumably lie in wait to upsell unsuspecting players.
If people do come out in droves to charge their phones, drink refreshments and get treated like royalty by ecstatic Sprint employees, then Sprint hopes to convince them to switch to Sprint for unlimited data, talk and text and the ability to stream as many videos, games and music as they like.
That could work.
Or maybe, just maybe, hip millennials who distrust big business will opt out of playing Pokemon Go altogether now that it’s moved on to marketing gimmicks to entice players.
And this is a gimmick that no one yet knows the cost of.
For Sprint stock holders’ sake, let’s hope that Sprint is actually on to something and not just the makings for very expensive loiters.
As of this writing, John Kilhefner did not hold a position in any of the aforementioned securities.
