Verizon Advances Satellite to Cellular Connectivity: Stock to Gain?

Group 1: Core Developments - Verizon Communications, Inc. has made significant advancements in satellite-to-cellular connectivity through a partnership with AST SpaceMobile, which is developing a space-based cellular broadband network for standard mobile devices [1] - In mid-2024, Verizon formed a strategic partnership with ASTS, committing $100 million to deliver direct-to-cellular service across the U.S., aiming for 100% coverage by leveraging its terrestrial network and ASTS' satellite capabilities [2] - ASTS received Special Temporary Authority from the FCC in January 2025 to test smartphones connected to its BlueBird satellites, successfully completing a video call between devices connected to terrestrial and satellite networks [3] Group 2: Market Position and Competition - Despite rapid 5G expansion, many areas in the U.S. remain outside network coverage, prompting Verizon to combine its terrestrial infrastructure with ASTS' capabilities to enhance connectivity and address dead zones [4] - Verizon's competitor, T-Mobile, is also developing direct-to-cell technology in collaboration with Starlink, indicating a competitive landscape in satellite connectivity [5] Group 3: Stock Performance - Verizon's stock has increased by 3.3% over the past year, while the industry has seen a growth of 41.8%, highlighting a lag in performance relative to peers [6] Group 4: Earnings and Rankings - Verizon has delivered an earnings surprise of 158.41% over the trailing four quarters, showcasing its strong performance in advanced mobile technologies [9] - Currently, Verizon holds a Zacks Rank of 3 (Hold), while other companies in the industry, such as InterDigital and Akamai Technologies, have higher rankings, indicating potential investment alternatives [8][10]