Verizon’s Unlimited Data Plan Causes Concern for Investors
Verizon (VZ) stock experienced a decline of nearly 1.5% in early trading on Monday, making it the worst performer in the Dow so far this year. This drop in stock value can be attributed to the reintroduction of Verizon’s unlimited data plan.
Verizon’s decision to bring back an unlimited data plan is a clear indicator that the company is striving to remain competitive with wireless rivals, such as AT&T (T), Sprint (S), and T-Mobile (TMUS). Morgan Stanley analysts noted that T-Mobile and Sprint have recently gained market share from Verizon through their unlimited data offerings.
While Verizon faces stiff competition in the telecom price war, there are additional challenges the company must overcome. AT&T’s acquisition of DirecTV has given it an advantage in the battle for control over people’s living rooms. Furthermore, AT&T’s proposed purchase of Time Warner and Verizon’s potential acquisition of Yahoo’s core assets add to the complexity of the situation.
Despite these obstacles, Verizon remains determined to maintain its position in the wireless market. The recent dip in Verizon’s stock, combined with the decline in AT&T’s stock, can be attributed to investors’ concerns about the impact of rising bond yields and the potential actions of the Federal Reserve.
Verizon’s future may be uncertain, but the company is willing to explore all possibilities in order to gain an edge over AT&T, Sprint, and T-Mobile. As the wireless industry continues to evolve, Verizon is prepared to face the challenges ahead.
CNNMoney (New York)First published February 13, 2017: 11:27 AM ET
Denial of responsibility! VigourTimes is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
