Investors seem to be increasingly interested in telecommunications companies lately, and Verizon is no exception.
The company’s stock has increased by over 50% in the last year alone, but today’s market downturn may have changed that. Find out what happened to their business, and how you can take advantage of a potential turn in their fortunes!
A Brief History of Verizon
Verizon Communications Inc. (VZ – Free Report) is an American multinational telecommunications conglomerate and one of the largest providers of wireless services in the United States. The company was founded in October 2000 as a joint venture of Bell Atlantic and GTE, which merged two years later.
Verizon Business, formerly known as Verizon Enterprise Solutions, is the business unit of Verizon that provides communications and collaboration solutions to large enterprises and governments worldwide.
The company offers a comprehensive portfolio of products and services, including voice, data, video, and security solutions. It also has a strong focus on cloud-based communications and collaboration solutions.
In September 2016, Verizon announced that it would acquire Yahoo! Inc.’s (YHOO – Free Report) core internet business for $4.83 billion in cash. The acquisition was completed on June 13, 2017.
On January 4, 2019, Verizon announced that it would be acquiring AOL Inc. (AOL) for $4.48 billion in cash and stock. The acquisition was completed on June 23, 2019.
How Verizon Uses its Cell Towers
Verizon has a history of using its cell towers to its advantage. The company has been able to use its cell towers to provide service during natural disasters and emergencies. Verizon was also one of the first companies to offer femtocells, which are small cell sites that can be used to improve indoor coverage.
In recent years, Verizon has been working on a project called Small Cell as a Service, or SCaaS. This project is designed to help businesses deploy small cell sites quickly and easily. Verizon has already deployed SCaaS in some markets, and the company plans to expand the program nationwide.
Verizon’s cell towers give the company an important advantage in the wireless market. With its large network of towers, Verizon can offer reliable service to its customers. In addition, Verizon’s experience with deploying small cell sites will be helpful as the 5G network is built out.
Why the shares fell in anticipation of 5G
The shares of Verizon Business (VZ – Free Report) stock fell on Tuesday as the company announced plans to launch its 5G network in October.
The announcement came as a surprise to investors, who had been expecting the launch to happen later this year. The delay means that Verizon will not be able to take advantage of the holiday shopping season.
Verizon is not the only company that has been affected by the delay in 5G. AT&T (T – Free Report) and Sprint (S – Free Report) have also seen their stock prices fall in recent months.
The good news for Verizon is that it is still ahead of its rivals in the race to deploy 5G. The company has already launched 5G services in several cities, including Chicago, Los Angeles, and Houston.
Verizon’s 5G network is also generally considered to be more robust than those of its rivals. This should give the company an advantage when it comes to attracting customers.
Overall, the stock market’s reaction to Verizon’s announcement appears to be overdone. The company is still in a strong position to benefit from the rollout of 5G, and investors should consider taking advantage of the current dip in share price.
The impact of lower prices on the network quality
The recent announcement of lower prices for business customers by Verizon (VZ – Free Report) has caused the stock to fall. Many investors are concerned about the impact of this move on the company’s bottom line.
However, it is important to remember that Verizon is a very large and diversified company. Likely, the impact of lower prices on the company’s overall profitability will be relatively small.
There are two key reasons why investors should not be too worried about the impact of lower prices on Verizon’s business. First, the company has a very strong competitive position in the market. It is one of the largest and most well-known providers of wireless services in the United States.
This gives it a significant advantage over smaller rivals. Second, Verizon has a history of making smart moves in response to competitive pressures. The company may be able to offset the impact of lower prices by making other changes to its business model that will improve its profitability.
Overall, investors should not be too worried about the impact of lower prices on Verizon’s business. The company has a strong competitive position and a history of making smart moves in response to competitive pressures.
Verizon Business (VZ – Free Report) stock fell on Thursday after the company announced it would be selling its media business to Apollo Global Management for $5 billion. While this may seem like bad news for Verizon, it actually presents a great opportunity for investors to take advantage of the situation.
Verizon is currently in the process of transformation and this move will allow them to focus on its core business, which is wireless communications. With a strong focus on their core competency, investors can expect Verizon’s stock to rebound shortly.