Verizon recently reintroduced its unlimited data plan, which is great news for its customers but not so great for its investors. The company’s stock fell nearly 1.5% in early trading on Monday and is down about 10% for the year, making it the Dow’s worst performer in 2017.
This move by Verizon indicates that the company is trying to stay competitive with rivals such as AT&T, Sprint, and T-Mobile. T-Mobile and Sprint have seen success with their unlimited offerings, leading to Verizon losing some market share. This competition has caused Verizon’s stock to decline while T-Mobile and Sprint’s stocks are on the rise.
In addition to increased competition in the telecom industry, Verizon is also facing challenges from AT&T’s acquisition of DirecTV and its plans to purchase Time Warner. Verizon is also dealing with the aftermath of data breaches at Yahoo, which it is in the process of acquiring.
Verizon is also involved in other business deals, such as buying the fiber optic network of XO Communications and selling its data center business to Equinix. There have even been rumors of Verizon potentially buying Charter Communications.
Despite these challenges, Verizon is determined to stay ahead in the wireless industry. However, the company’s stock may continue to face pressure due to factors such as rising bond yields and potential interest rate hikes by the Federal Reserve.
Overall, Verizon is facing a number of obstacles that could impact its stock performance in the near future. Investors should keep an eye on how the company navigates these challenges and adapts to the changing landscape of the telecom industry.