Verizon Stock (NYSE:VZ)
Verizon (NYSE:VZ) stock hit its lowest point in almost 12 years on Friday morning. It is expected to fall further after Verizon stock reported disappointing subscriber growth in the third quarter while exceeding Wall Street’s financial projections.
Over the previous six months, Verizon stock has been down 37%, and as of late Friday morning, it was down 6.5%. Nearing its lowest depth since November 2010, it is on track for its worst one-day dip since July 22 (when it plummeted 6.7%).
And the airline had higher earnings per share and more sales than anticipated. However, phone growth has slowed. Verizon stock has announced plans to adopt cost cuts to save between $2 billion and $3 billion by 2025.
New Street Research retorts, “The results at the sector level aren’t nearly as great as the headline implies,” implying that the financial beats obscure the true outcomes.
We believe long-term growth guidance has to be changed, but we expect that to occur on the 4Q22 call in January.
Due to the previously disclosed challenging quarter for postpaid phone volumes and the favorable pricing measures that showed up in the financials, Citi predicts that the results would be seen as “roughly in-line with market expectations.” However, “2023 performance is unlikely to grow materially better,” despite Verizon’s best efforts.
Vijay Jayant, an analyst at Evercore ISI, said that the metrics and financials were generally in line with expectations. Jayant observes that despite challenges in the consumer wireless sector, business sub-growth remains strong, and Verizon stock has reaffirmed its full-year expectations.
In contrast to Verizon’s findings, competitor AT&T (NYSE:T) rose 1.3% on Friday, after a 7.7% increase on Thursday on the back of reports showing an increase of 708,000 postpaid phone users.
Featured Image- Megapixl @ Waingro
Author Shariq Khan 
