Verizon Stock (NYSE:VZ)
In early trading on Wednesday, shares of Verizon (NYSE:VZ) gained more than 2% after the chief executive officer of the company reported that the telecom giant added subscribers in its most recent quarter and would reduce its spending plans for 2023 as a result of the sluggish global economy.
Hans Vestberg, CEO of Verizon, said that the company increased customers on a net basis in the fourth quarter when he spoke at an investor conference hosted by Citi. He also said that consumers’ “good” health had not changed and that there had been increased in-store traffic.
In October, Verizon stock said that during the third quarter, it had gained only 8,000 postpaid phone customers, which was far lower than the projections and the 708,000 total postpaid phone users that competitor AT&T acquired during the same period.
Vestberg also said that Verizon was still figuring out its strategy for capital spending in 2023. Still, he did say that the company will cut capital spending to around $17 billion this year and in 2024.
At the conference, Vestberg, who is 57 years old, said that “cash generation” is the company’s “ultimate purpose.”
In October, in connection with the results of its third quarter, Verizon announced that it would initiate a cost reduction plan to slash between $2 billion and $3 billion from its yearly expenditures by the year 2025.
Kyle Malady, who is in charge of the network at Verizon, was also present at the conference. He said that most of the work needed to build the company’s 5G network has already been done.
For several reasons, the financial services company Oppenheimer included Verizon stock on its list of the best cloud and communications companies to buy for 2023 earlier this month.
Featured Image: Unsplash @ Leon Bredella