Pretty much everything is being shaved excessively these days and the shaky hands seem to be increasing. Today $VZ (-4.51%) Verizon "caught" with a price loss of over 8.5%. A nice dividend stock in my portfolio and that's where it will stay.
Verizon warned on Tuesday that subscriber growth in the first quarter is likely to be "weak" as competitors lure customers with special offers. The company's shares fell 5.3% in pre-market trading as a result, with the US wireless giant cutting back on customer incentives after a promotional December quarter, while its rivals did not, intensifying competition, Chief Revenue Officer Frank Boulben said at Deutsche Bank's Media, Internet & Telecom Conference.
American telecom companies have relied on incentives in a fierce battle for customers as growth slows in a saturated market. That has boosted customer growth but also raised concerns about profits.
Shares of Verizon rival AT&T fell 4.5% after the company also reported increased customer churn in January, while T-Mobile US slipped 2.1%.
Verizon also saw a "slow start" on phone upgrades in the first quarter, a sign that customers remain reluctant to buy amid growing concerns about the US economy.
Still, the company expects to add more paying wireless customers in 2025 than the roughly 900,000 subscribers it added last year as it benefits from its customizable myPlan.
The comments follow a strong fourth quarter for U.S. telecom companies, in which plans to bundle 5G services with high-speed fiber data as well as streaming services helped attract customers.
Verizon also said it doesn't expect major losses from the tightening of immigration policies in the US.
"We expect very limited impact on the postpaid side, where customers have to provide some form of identification to get a contract. So if there is an impact, it's more likely to be at the lower end of the prepaid market," said Boulben.
Since taking office in January, President Donald Trump has launched a sweeping crackdown on immigrants, tasking the US military with securing the border and issuing a broad ban on asylum.
Source: MarketScreener
