Bernstein Reiterates a Hold on Verizon Communications (VZ)

Core Insights - Verizon Communications Inc. is currently viewed as one of the best communication and media stocks to buy, with a Hold rating and a price target of $46 set by analyst Laurent Yoon from Bernstein [1] Group 1: Company Developments - Verizon's new CEO plans to implement significant layoffs, cutting 15,000 jobs, which represents 15% of the company's workforce, marking the largest layoffs in the company's history [2] - The layoffs will primarily affect non-union management positions, with a reduction of more than 20%, and the company also intends to convert 180 retail stores into franchises [2] Group 2: Market Position and Competition - Verizon is experiencing market pressure due to lower new customer additions, with only 44,000 monthly bill-paying wireless subscribers added in fiscal Q3 2025, compared to AT&T's addition of over 1 million net subscribers during the same period [3] - The competitive landscape is intensifying as rivals are offering cheaper plans, further challenging Verizon's market position [3] Group 3: Investment Perspective - While Verizon is recognized for its potential as an investment, there are suggestions that certain AI stocks may offer greater upside potential and carry less downside risk [4]