Why Verizon Stock Is Up Today
It's been a tough year for holders of Verizon Communications (NYSE: VZ), with fears about churn in the mobile phone market and the company's massive capital expenditures requirements in the years to come weighing on the stock. But at least one analyst believes those fears are overstated and that Verizon is a long-term winner.
Shares of Verizon traded up as much as 2.5% on Thursday following the upgrade, on a day when the broader markets were down by a similar amount.
Verizon is a major player in an increasingly commoditized business where little seems to differentiate various competitors. The company, along with rivals including AT&T, has seen an uptick in churn -- customers who come and go looking to capitalize on whatever the best deal is at any given moment. Verizon also has more than $175 billion in total debt, as well as huge capex requirements in the coming years as it builds out its 5G offering.
Source Fool.com
