By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Wall St. BoltWall St. Bolt
  • Home
  • Stock Market News
  • Economy
  • Latest Stories
  • IPOs – Latest & Upcoming IPO News
Reading: Should You Still Consider Investing in Verizon?
Share
Notification Show More
Latest News
Investors Are Bullish on Nouveau Monde Graphite (NMG)
Stock Market News
SoundThinking (SSTI) Delivers Real-Time Crime Intelligence to Over 2,100 Agencies
Stock Market News
PHX Minerals Could Outperform: Passive Income from Energy Royalties
Stock Market News
Here’s Why Mayville Engineering Is a Strong Buy in 2025
Stock Market News
Atlantic American Corp. (AAME): An Undervalued Stock Poised for a Turnaround
Stock Market News
Aa
Wall St. BoltWall St. Bolt
Aa
  • Home
  • Stock Market News
  • Economy
  • Latest Stories
  • IPOs – Latest & Upcoming IPO News
Have an existing account? Sign In
Follow US
  • Privacy Policy
  • Actionable Feedback Policy
  • Corrections Policy
  • Editorial Guidelines
  • Terms and Conditions Disclosure
© 2023 Wall St Bolt. All Rights Reserved.
Wall St. Bolt > Blog > Stock Market News > Should You Still Consider Investing in Verizon?
Stock Market News

Should You Still Consider Investing in Verizon?

Wall St. Bolt Editorial Team
Last updated: 2024/10/22 at 1:56 PM
Wall St. Bolt Editorial Team 7 months ago
Share
Should You Still Consider Investing in Verizon?
SHARE

Verizon Communications (VZ) reported mixed results for the third quarter of 2024, posting a slight dip in stock price despite beating earnings expectations.

Contents
Will Verizon’s $20B Frontier Acquisition Be the Game-Changer Against AT&T and T-Mobile?Frontier Deal Offers Long-Term Promise, But Verizon Faces Near-Term Pressures

The company added a strong number of wireless subscribers, but flat revenue and slowing growth in its wireless services dampened investor optimism.

This performance reflects the challenges Verizon faces in a highly competitive market, where it’s balancing steady subscriber growth with stagnating revenues.

Verizon’s adjusted earnings for Q3 came in at $1.19 per share, slightly above analysts’ estimates of $1.18, but still down 2% year-over-year. The company’s revenue remained flat at $33.3 billion, just below Wall Street’s expectations of $33.5 billion.

The standout figure was Verizon’s addition of 239,000 postpaid phone subscribers, beating estimates of 218,000, demonstrating strong demand for its wireless services.

These postpaid customers are Verizon’s highest spenders, making their acquisition a crucial factor in the company’s long-term growth strategy.

Despite the strong subscriber growth, Verizon’s wireless service revenue growth slowed to 2.7%, down from 3.5% in the previous quarter, highlighting competitive pressures in the telecom sector.

Verizon’s success in adding fixed wireless broadband customers, 363,000 in Q3, bringing its total to 4.2 million, shows its efforts to expand beyond traditional wireless services.

The fixed wireless broadband market has become increasingly important, with total FWA revenue for the quarter reaching $562 million, a significant 62% increase from the prior year.

This diversification into broadband services reflects Verizon’s adaptation to broader market trends of increased connectivity demand.

Check this out: Is it a Wise Choice to Invest in Philip Morris?

Should You Still Consider Investing in Verizon?

Will Verizon’s $20B Frontier Acquisition Be the Game-Changer Against AT&T and T-Mobile?

Verizon is operating in a landscape of heightened competition, with AT&T and T-Mobile showing stronger stock performance in 2024. AT&T stock has surged nearly 30% and T-Mobile stock is up 39%, outpacing Verizon’s 16% growth.

However, the company’s recent announcement to acquire Frontier Communications for $20 billion could be a game-changer.

Frontier is a major fiber provider, with 10 million expected home passings by the end of 2026, offering Verizon a stronger foothold in the broadband space.

This acquisition could fuel long-term growth, but it may also delay Verizon’s stock buyback plans, which investors have been anticipating.

Frontier Deal Offers Long-Term Promise, But Verizon Faces Near-Term Pressures

Verizon’s third-quarter results paint a mixed picture of its current position. While the company continues to see strong subscriber growth, particularly in fixed wireless broadband, its flat revenue and slower growth in wireless services highlight ongoing challenges in the highly competitive telecom industry.

The acquisition of Frontier Communications presents a promising opportunity for future expansion, particularly in the broadband market, but the financial benefits of this deal may take time to fully materialize.

Despite these short-term challenges, Verizon remains a stable investment choice, offering long-term potential through its strategic diversification efforts.

Although Verizon is positioning itself for future growth through diversification and acquisitions, investors should remain mindful of potential risks.

Delays in realizing the full financial benefits of the Frontier deal, along with pressures from competitors, may impact the company’s near-term performance.

However, Verizon’s forward-looking approach remains cautiously optimistic, and effectively managing these risks will be essential to maintaining investor confidence moving forward.

Read also: Treasury Yield Surge: 10-Year Hits Highest Levels Since July and Here’s Why Lululemon is a Standout Buy.

You Might Also Like

Investors Are Bullish on Nouveau Monde Graphite (NMG)

SoundThinking (SSTI) Delivers Real-Time Crime Intelligence to Over 2,100 Agencies

PHX Minerals Could Outperform: Passive Income from Energy Royalties

Here’s Why Mayville Engineering Is a Strong Buy in 2025

TAGGED: Verizon Communications (VZ)
Wall St. Bolt Editorial Team October 22, 2024
Share this Article
Facebook Twitter Email Print
Posted by Wall St. Bolt Editorial Team
The Wall St. Bolt Editorial Team consists of experienced market analysts and financial writers who are passionate about delivering timely, accurate, and insightful financial news. With backgrounds in economics, journalism, and market research, the team works collectively to provide expert coverage of global markets.
Previous Article Is it a Wise Choice to Invest in Philip Morris?
Next Article Is it Now a Great Time to Sell Your Deckers Outdoor Shares?
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Wall-St-Bolt-Transparent

Wall St. Bolt provides real-time, lightning-fast market news and stock updates, keeping you ahead of the curve with the latest insights and trends in the financial world.

Quick Links

  • About Us
  • Contact

Latest News Stories

  • Investors Are Bullish on Nouveau Monde Graphite (NMG)
  • SoundThinking (SSTI) Delivers Real-Time Crime Intelligence to Over 2,100 Agencies
  • PHX Minerals Could Outperform: Passive Income from Energy Royalties
  • Here’s Why Mayville Engineering Is a Strong Buy in 2025
  • Atlantic American Corp. (AAME): An Undervalued Stock Poised for a Turnaround

News Categories

  • Economy
  • Stock Market News
  • IPOs – Latest & Upcoming IPO News

Follow Us on Social Media

© 2024 Wall St. Bolt Media Network. All Rights Reserved.

  • Privacy Policy
  • Actionable Feedback Policy
  • Corrections Policy
  • Editorial Guidelines
  • Terms and Conditions Disclosure
Stay Ahead with the Fastest Stock Market News!

Subscribe for the latest updates on stock market trends, IPOs, and economic news. Get expert analysis and insights delivered straight to your inbox, ensuring you never miss an important market move. Join our community of savvy investors today!

Zero spam, Unsubscribe at any time.

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?