Verizon Outage Ends — And The Stock Is Bracing For The Damage - Verizon Communications (NYSE:VZ)

Core Viewpoint - Verizon Communications experienced a nationwide outage affecting text, voice, and data services, leading to customer dissatisfaction and potential financial implications for the company [1][2][5]. Group 1: Outage Impact - The outage lasted for several hours, causing significant inconvenience for customers who rely on their phones for work, emergencies, and digital transactions [2]. - Verizon has committed to providing account credits of $20 to affected customers, which could total over $2.8 billion if all 140 million customers qualify [3][6]. - The company acknowledged the disruption and apologized, stating that the credits are not meant to fully compensate for the outage but to recognize the inconvenience caused [4]. Group 2: Financial Implications - The financial impact of the outage is expected to be reflected in Verizon's first-quarter results, with analysts closely monitoring how the company addresses this in its upcoming earnings report [7][10]. - Analysts predict Verizon will report fourth-quarter revenue of $36.06 billion, an increase from $35.70 billion, and earnings per share of $1.06, down from $1.10 in the previous year [8]. - Despite the outage, Verizon shares initially closed higher, but later saw a decline of 1.3% to $39.30, indicating investor concerns about the potential long-term effects on earnings and customer retention [9][11].