Verizon ( (VZ) ) is experiencing volatility. Read on for a possible explanation for the stock’s unusual movement.
Verizon’s stock has recently taken a hit, dropping over 7.5%, primarily due to concerns about its subscriber growth. The company warned of weaker subscriber additions, which analysts attribute to aggressive promotions by competitors that could impede Verizon’s customer acquisition efforts. This comes after Verizon had already exhausted its promotional strategies in the previous quarter. While the telecom sector is seeing subscriber growth, the rising costs of acquiring these subscribers are squeezing profits. Verizon’s recent pricing strategies are anticipated to increase customer churn and result in flat or slightly decreased subscriber additions in the first quarter of 2025. Despite these hurdles, Verizon remains hopeful for higher net additions in 2025 compared to 2024, although the stock continues to be pressured by competitive forces and market conditions.
More about Verizon
YTD Price Performance: 18.33%
Average Trading Volume: 22,869,740
Technical Sentiment Consensus Rating: Sell
Current Market Cap: $195.7B
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