Verizon Communications (VZ)

Add a New Bears Reason Company: Verizon Communications (VZ) Current price: Headline: (100 character max) Analysis: Cancel 15% agree 171 votes   Verizon margins under pressure Created when NYSE:VZ was $41.63 | Edit | History Verizon Wireless is performing well, but the cost of maintaining network quality and keeping out competition is high. The firm just spent $2.8 billion on wireless spectrum at a Federal Communications Commission auction, primarily adding capacity in areas it already serves. (100 character max) Cancel 13% agree 162 votes   The death of wireline Created when NYSE:VZ was $41.63 | Edit | History Customers are increasingly replacing their traditional phone lines with wireless and data services or switching to competing carriers. Verizon's ability to extract high margins through its phone network is declining. Around two thirds of the fixed-line segment's revenue is still tied to the phone business. (100 character max) Cancel 2% agree 127 votes   Verizon is putting its money in the wrong place Top Contributor: Ben Hur Gomez | Created when NYSE:VZ was $41.63 | Edit | History Verizon is spending a tremendous amount of money to upgrade its fixed-line network and connect customers to that network. Earning a decent return on this investment, given declining demand for phone service and stiff competition for Internet access customers, will be difficult. Its wireline business segment continues to be under pressure as its margins tighten. (100 character max) Cancel

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