Verizon (VZ) doesn’t plan to moderate its network infrastructure investment, even as recession concerns loom.
“I think the last six, seven years, we have planned exactly how we’re going to invest in the network,” Verizon CEO Hans Vestberg told Yahoo Finance Live (video above). “This is our peak year. We’re going to do somewhere around $22 billion in capex, that’s our guidance. And one portion is our business as usual, and then the other is that the new spectrum we bought last year is actually coming to execution right now, and we’re doing that as fast as we can.”
In order to help offset the rise in capital expenditures as Verizon continues to invest heavily in its network infrastructure, the company announced select price increases this year, which vary across subscription plans.
Hans Vestberg, Verizon executive vice president and president of Global Networks and Chief Technology Officer, responds to a question during a panel discussion on 5G wireless broadband technology during the 2018 CES in Las Vegas, Nevada, U.S. January 10, 2018. REUTERS/Steve Marcus
These service fee adjustments arrived as consumers continue to juggle higher prices with inflation remaining near 40-year highs.
Verizon stock fell more than 4% on Friday after the company reported a decline in subscribers. Vestberg noted that the drop in subscribers was expected after the price changes were rolled out and maintained that it should ease over time.
“We took a deliberate decision in the second quarter to do price adjustment in certain consumer segments,” Vestberg said. “I think it was important for us to also do that because our industry has not done price adjustments on wireless ever, so this was the time to do it.”
Verizon’s calculated decision to raise some fees for customers knowing some subscribers might balk at higher prices isn’t unusual in the industry as telecommunication giants spend to compete over latency levels and network reliability.
On Thursday, AT&T Chief Financial Officer Pascal Desroches told Yahoo Finance that the company plans to invest in its network. Desroches also expressed confidence in AT&T’s ability to continue spending on improving network speed and reliability in the event of an economic downturn.
Despite the present risk of a Federal Reserve-induced recession, communication services executives share the expectation that their core product is resilient.
“We all read what’s happening in the macro economy with higher inflation and the interest rates coming up, so it’s a little bit mixed,” Vestberg said. “But clearly, we are in the fundamental product. Everybody needs mobility, everybody needs to be connected.”
Brad Smith is an anchor at Yahoo Finance. Follow him on Twitter @thebradsmith.
When we reviewed shares of Verizon Communications back on August 31 when we wrote, “Avoid the long side of VZ as the short and long-term charts are bearish.” On Friday shares of VZ sank to a new 52-week low on the heels of missing analyst estimates of Q3 subscribers. The On-Balance-Volume (OBV) has made new lows for the move down as well and confirms the observation that sellers of VZ have been more aggressive than buyers.
The Horned Frogs scored 28 consecutive points after trailing 28-10.
Shares of AT&T (NYSE: T) leaped 14% this past week, according to data from S&P Global Market Intelligence. AT&T added 708,000 postpaid phone subscribers during the quarter, bringing its total year-to-date additions to more than 2.2 million. Postpaid subscribers pay monthly bills and are generally the most profitable customers for telecom companies.
If you’re approaching retirement age, chances are you need to brush up on your Social Security knowledge. A recent MassMutual poll found that most people nearing retirement age don’t know the ins and outs of this vital safety net program. … Continue reading → The post 65% of People Struggled With These Social Security Questions: Can You Get Them Right? appeared first on SmartAsset Blog.
Yahoo Finance Video
Verizon Communications Inc. stock is trending on the Yahoo Finance Platform. Here is a visualization of $VZ performance over time, how that performance compares to the wider industry, and analyst projections for the current quarter.
(Bloomberg) — Most Read from BloombergSandy Hook Families Ask Judge to Max Out Alex Jones PenaltyTSMC Suspends Work for Chinese Chip Startup Amid US CurbsTrump Firm’s Tax Fraud Trial Promises Ex-CFO as Star WitnessJudging by the ominous pronouncements from Wall Street luminaries, every trader under the sun should be prepping for fresh turmoil in the world’s biggest stock market.Yet hedging for doom and gloom is falling out of fashion fast, thanks to a historic equity rout that’s already erased
Let’s have a look at three stock-split stocks that, in our opinion, remain screaming buys: Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), Palo Alto Networks (NASDAQ: PANW), and Tesla (NASDAQ: TSLA). Will Healy (Alphabet): The Google parent is one of the largest in tech. As the owner of the Google search engine, YouTube video site, and Android operating system, it continues to wield considerable influence over the tech world.
The Wall Street Journal
Some officials have begun signaling their desire to slow down the pace of increases soon and to stop raising rates early next year to see how their moves this year are slowing the economy.
The healthcare sector is a particularly smart place for investors to consider. AbbVie’s shares are up 5% since January, despite the fact that Humira, its best-selling drug, will face biosimilar competition in the U.S. starting next year. AbbVie has gone to great lengths to decrease its reliance on the popular immunology medicine.
Shares of Sam Adams brewer The Boston Beer Company (NYSE: SAM) popped their top on Friday, surging 17.6% through 1 p.m. ET after beating earnings last night. Expected by Wall Street analysts to earn a pro forma profit of $3.07 per share on sales of $567.8 million, Boston Beer instead ended up earning $2.21 per share when calculated according to generally accepted accounting principles (GAAP). Plus $1.61 per share in non-cash impairment charges, that equals $3.82 per share, pro forma, with sales coming in at $596.5 million.