Why Is Verizon Stock Falling Tuesday?
Verizon Communications Inc. (NYSE: VZ ) stock fell Tuesday after the telecom giant exited the Dow Jones Industrial Average and unveiled a new international joint venture with BT Group Plc (OTC: BTGOF ) that will result in significant charges. Dow Exit, JV Costs Pressure Verizon Stock Verizon officially began trading outside the Dow Jones Industrial Average after being replaced by Alphabet Inc. (NASDAQ: GOOGL ). The change prompted selling by index-tracking funds and exchange-traded funds that replicate the benchmark, adding pressure to the stock. Separately, Verizon has agreed to combine its international wireline connectivity and managed network services business with BT Group’s corresponding operations in a new 50-50 joint venture. Verizon will contribute its international business and make a $625 million cash payment, which the joint venture will distribute to BT. The deal re...
Verizon Communications Inc. (NYSE: VZ ) stock fell Tuesday after the telecom giant exited the Dow Jones Industrial Average and unveiled a new international joint venture with BT Group Plc (OTC: BTGOF ) that will result in significant charges. Dow Exit, JV Costs Pressure Verizon Stock Verizon officially began trading outside the Dow Jones Industrial Average after being replaced by Alphabet Inc. (NASDAQ: GOOGL ).
The change prompted selling by index-tracking funds and exchange-traded funds that replicate the benchmark, adding pressure to the stock. Separately, Verizon has agreed to combine its international wireline connectivity and managed network services business with BT Group’s corresponding operations in a new 50-50 joint venture. Verizon will contribute its international business and make a $625 million cash payment, which the joint venture will distribute to BT. The deal remains subject to regulatory approvals and customary closing conditions.
Verizon expects to record a second-quarter loss of $700 million to $800 million related to classifying the contributed business as held for sale. The company also expects severance charges of $350 million to $450 million from workforce reductions and asset rationalization charges of $200 million to $300 million tied mainly to exiting certain real estate and network assets. 5% below its 200-day SMA, pointing to a sustained downtrend. Momentum indicators also remain soft.
The MACD sits below its signal line, while the histogram remains negative, suggesting bearish momentum persists. Although the stock’s 50-day SMA remains above the 200-day SMA following February’s golden cross, the 20-day SMA remains below the 50-day SMA, indicating short-term selling pressure. 00. Earnings And Analyst Outlook The company’s next earnings report is scheduled for July 24.
50 billion last year. 68. Recent actions include a Hold initiation from Freedom Broker with a $53 price forecast, while JPMorgan and Morgan Stanley recently raised their price forecasts to $52 and $50, respectively. 70 at the time of publication on Tuesday, according to Pro data.
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