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18/10/2021

Verizon stock

Verizon, or Verizon Communication Inc., is an American telecommunications company based in New York. It is the second largest telephone operator in the world in terms of revenue. In 2020, its turnover reached 114.56 billion euros.

Operating in a vibrant industry, Verizon attracts considerable interest from investors. Take a look at this guide to find out more about the company profile.

History of Verizon

Verizon Communications Inc. was formed on June 30, 2000, through the merger of Bell Atlantic Corp. and GTE Corp in one of the largest corporate mergers in the United States. Verizon comes from the Latin word "veritas" meaning certainty and reliability, as well as "horizon" which implies a look to the future.

Here are some of the most important acquisitions in the history of the group:

  • 2005 : MCI Communication Corp.
  • 2007 : Cybertrust, a privately held information security service provider.
  • 2009 : Alltel Corp, in a deal that enabled Verizon to become the largest wireless provider in the United States.
  • 2011 : Terremark Worldwide Inc, specializing in IT infrastructure management and Cloud service provider and Cloud Switch, an innovative cloud technology company.
  • 2012 : Hughes Telematics with which Verizon entered the automotive telematics and Internet of Things market.
  • 2013 : upLynk, EdgeCast and Intel Media, three companies that allowed it to make a big move into the field of cloud-based TV services.
  • 2015 : AOL, Verizon's ambition being to become #1 in media technology for creators, advertisers and consumers on the mobile network platform.
  • 2016 : Fleetmatics Group, a remote fleet management software company.
  • 2020 : Tracfone, America Movil's prepaid card business.
  • 2020 : BlueJeans, video conferencing app and Zoom competitor.

Verizon's business model

Verizon is primarily a telecommunications company but also operates in other business sectors. Here are some of the divisions of Verizon Communications:

  • Mobile telephony : Verizon Wireless
  • Fixed-line telephony : Verizon Telecom
  • Business telephone service : Verizon Business
  • Media and online business : Verizon Media
  • GPS-based fleet management : Verizon Connect 

Verizon stock data

  • IPO date : July 3, 2000 on the NYSE
  • Stock symbol : VZ
  • Isin code : US92343V1044
  • Share price in October 2005 (after inclusion in the DJIA) : $29.52
  • Share price in April 2020 : $58.40
  • Dividend stock : yes

Factors that can influence Verizon's share price

Verizon's stock is considered defensive, meaning it is less affected by macroeconomic conditions. Before deciding whether to invest, you need to take a look at the services provided by the company. Do they meet the needs of its customers? Are they likely to go to competitors because of dissatisfaction? Users' opinions are indicators in this field.

Potential investors should also keep a close eye on Verizon's acquisitions. The acquisition of companies or technologies can be done with various aims, including international expansion, new services, to get ahead of competitors or to catch up in certain fields.

Competition also needs to be watched closely. Almost all of Verizon's revenues are generated in the United States. Its main competitors are therefore American companies operating in the same sector. These include AT & T, which it has still not managed to overtake in terms of turnover. Other competitors include Sprint Nextel Corporation and Qwest Communication International. 

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