Why Verizon’s Stock is Surging While AT&T Struggles
- Verizon stock has gained 11% this year, outperforming AT&T
- Verizon reported stronger-than-expected Q4 results
- Wall Street analysts are more bullish on Verizon than AT&T
- Both companies face concerns over debt, landline customers, and legacy cables
- AT&T’s deal with Ericsson and industry competition are potential challenges
- Verizon’s recent edge may be due to price increases and better performance indicators
- AT&T is losing market share to Verizon
- Verizon and AT&T stocks could still return to their previous pattern
Verizon Communications and AT&T, two major telecom companies, are experiencing contrasting fortunes in 2024. Verizon’s stock has gained 11% this year, while AT&T’s is in decline. The difference is not just in stock performance, but also in their recent financial results and analyst ratings. Both companies face similar challenges, including debt concerns and declining landline customers. However, Verizon seems to have an edge due to stronger Q4 numbers and positive performance indicators. On the other hand, AT&T’s network trails behind Verizon and T-Mobile, and its 5G strategy is unclear. Additionally, AT&T’s deal with Ericsson and the competitive landscape of the industry pose potential challenges. Market share data shows that Verizon is gaining ground while AT&T is losing. Despite the current divergence, it remains to be seen if the stocks will return to their previous pattern. Investors should also keep an eye on T-Mobile, which has been favored by investors in the telecom group.
Public Companies: Verizon Communications (VZ), AT&T (T)
Private Companies:
Key People: Brandon Nispel (KeyBanc Capital Markets Analyst), Craig Moffett (Moffett Nathanson Analyst)
Factuality Level: 7
Justification: The article provides information about the performance of AT&T and Verizon stocks in 2024, including their stock gains/declines, subscriber additions, and earnings. It also mentions the concerns about the telecoms’ debt loads, landline customers, and potential liability related to lead levels in their cables. The article includes quotes from analysts and industry watchers to support its claims. However, it does not provide any sources for the information mentioned, and some statements are presented as opinions rather than facts.
Noise Level: 3
Justification: The article provides relevant information about the performance of AT&T and Verizon stocks in 2024, including their financial results and analyst ratings. It also discusses the factors that could be contributing to Verizon’s recent edge over AT&T. However, there is some repetitive information and the article does not provide a deep analysis of long-term trends or antifragility.
Financial Relevance: Yes
Financial Markets Impacted: AT&T and Verizon Communications
Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses the performance of AT&T and Verizon Communications in the stock market, highlighting their differences in stock price and financial results. However, there is no mention of any extreme events or significant impacts on financial markets or companies.
www.marketwatch.com 
