Verizon re -limited data plan. This is great if you are a client in Verizon. But it is terrible news for its investors.
Verizon ((Vz)) The shares decreased nearly 1.5 % in the early trading. It has now decreased about 10 % so far this year, making it the worst performance in 2017.
Verizon step is a clear sign that the company must withdraw all stations to stay competitive with its wireless competitors AT & T ((R.))and race ((S)) and T-Mobile ((TM)).
“In recent months, T-Mobile and SPRINT have achieved some success in obtaining an additional share of Verizon by virtue of their unlimited offers,” Morgan Stanley wrote in a report on Monday morning.
This may explain the reason for the rise of T-Mobile and SPRINT shares, which are now controlled by Japan Technology SoftBank, both this year during Verizon. T-Mobile and SPRINT have been permanently linked as potential fusion partners.
But the new communications price war is not the only problem for Vzon.
AT & T recently acquired the Dirowsv satellite, a step that makes MA Bell more competitive against Verizon in the battle to control people’s living rooms. Verizon offers its Fios BroadBand TV service.
Related: Verizon restores unlimited data plans
AT & T is making a much larger bet on the content, with plans to buy the parent company CNN Time Warner ((Twx)). Verizon already has AOL and looks forward to buying the basic assets of Yahoo to support its digital content offers.
but Yahoo ((Yahoo)) The deal may collapse in the wake of the disclosure of huge data violations in Yahoo over the past few years.
Yahoo recently said she hoped to close the deal with Verizon in the second quarter of this year. It was supposed to be completed in the first quarter.
However, in its latest version of profits, Verizon said it simply “continues to work with Yahoo to assess the impact of data violations” – do not expect the deal to be closed anytime soon.
Verizon has a lot on its plate, which may make investors tense. In addition to the Yahoo deal, the company is also in the process of purchasing the optical fiber network for XO Telecom. She sells her data center business equinix ((Script)).
There have also been rumors in the past few weeks that Verizon may consider buying a cable provider Etisalat Charter ((Chtr)).
This may be more realisticly to dealing. But nothing may be out of the table for Zone, given the competitiveness of the wireless world these days.
Anything can give Verizon a leg on AT & T, SPRINT and T-Mobile may be possible.
Related: The Charter’s shares emerged as a report on the possible Verizon acquisition
However, it should be noted that AT&T shares are also less this year, a decrease of about 5 %. Verizon and A&T have something common between the lack of giant profits in Verizon and AT & T.
Companies that have large distribution returns have not been performed since Donald Trump’s election. Investors are betting on the large stimulus package and Republican Congress, which may be partially fed with debt.
This causes high bond returns – this makes the major profits arrows like Verizon less attractive.
The Federal Reserve is expected to raise interest rates several times this year as well. The bond returns can be paid higher.
So Verizon faces many great challenges that can harm its shares this year.
For this reason, you may see Verizon, nicknamed Big Red because of Hue Crimson Hue with its logo, shares in red in the foreseeable future.
CNNMoney (New York) It was first published on February 13, 2017: 11:27 AM Et