Verizon's CEO Just Admitted Its Pricing Strategy Cost the Company 2.25 Million Customers

Core Viewpoint - Verizon is shifting its strategy away from profit-driven price increases to focus on subscriber growth and market share, which is seen as a positive move for investors [1][3][6]. Group 1: Subscriber Dynamics - Verizon has experienced a high churn rate and loss of market share due to continuous price hikes without corresponding value, leading to a net reduction in its wireless retail postpaid phone subscriber base in 2025 [2][3]. - Over the past three years, Verizon's churn rate increased by 0.25 percentage points, resulting in a loss of approximately 2.25 million net additions [4]. - The company aims to achieve between 750,000 and 1 million postpaid net phone additions this year, significantly higher than the previous year's performance [7]. Group 2: Pricing Strategy - Verizon implemented four price increases in 2025, but these did not provide sufficient value to customers, contributing to subscriber losses [5]. - The new CEO, Dan Schulman, emphasized that future price increases must be justified by the value they deliver, moving away from relying on empty price hikes for short-term revenue [6]. - While wireless revenue is expected to be flat this year due to past price increases, the company is laying the groundwork for long-term growth [7]. Group 3: Market Performance - Following the announcement of the new turnaround strategy, Verizon's stock surged by 11.83%, indicating investor confidence despite a weak wireless revenue forecast [8]. - The stock is currently trading at less than 10 times the average analyst estimate for 2026 earnings, suggesting a potential opportunity for investment as the company implements its growth strategy [9].