Key Takeaways Verizon shares fell 6.2% in six months while trailing the tech sector and S&P 500.Soft demand in Business segment, heavy spending on promos and fierce competition continue to pressure margins.Wireless growth, fiber expansion and new customer wins highlight potential improvement.Verizon Communications Inc. (VZ) has dropped 6.2% in the last six months compared with the Wireless National industry’s decline of 9.4%. The stock has underperformed the Zacks Computer & Technology sector and the S&P 50 ...

Core Insights - Verizon Communications Inc. has signed a definitive agreement to acquire Starry, enhancing its fixed wireless broadband capabilities and aiming to double its subscriber base to 8-9 million by 2028 [1][8] - The acquisition will expand Verizon's reach to 90 million households, leveraging Starry's existing infrastructure in urban markets [2][8] Group 1: Acquisition and Expansion - The acquisition of Starry allows Verizon to integrate millimeter wave technology with its fiber assets, providing affordable high-speed Internet services in urban areas [2] - Verizon is also pursuing the acquisition of Frontier Communications, which will extend its fiber footprint and improve its broadband and mobility services [4] - The combination of Frontier's broadband with Verizon's mobile offerings is expected to reduce customer churn by approximately 50% for postpaid mobility, potentially boosting mobility division revenues [4] Group 2: Network and Technology Development - Verizon is focused on capital expenditures to expand its 5G mmWave network and enhance its fiber infrastructure to meet growing traffic demands [3][8] - The company's 5G network relies on massive spectrum holdings, deep fiber resources, and a large number of small cells to maximize the potential of next-generation wireless technology [6] Group 3: Market Challenges - Despite growth in wireless services, Verizon faces declining legacy services and competitive pressures from VoIP providers and cable companies, impacting its wireline division [7] - High capital expenditures for 5G and fiber deployment, along with competitive pricing strategies, are affecting Verizon's profit margins [8][16] Group 4: Stock Performance and Investor Sentiment - Verizon's stock has declined by 5% over the past year, underperforming compared to industry growth and competitors like AT&T and T-Mobile [11] - Earnings estimates for 2025 have decreased by 0.8% to $4.69, while estimates for 2026 have increased by 2.7% to $4.92, indicating mixed investor sentiment regarding growth prospects [14]