The Motley Fool on $VZ (Oct 26, 2026)
Verizon posted strong results (prepaid net additions above 400,000, best in 5 years; 137,000 new accounts) and yields 6.5%, so it is attractively valued, and the SpaceX/Starlink fear behind the recent 6.5% monthly drop is mostly hype for the next few years. But it is not a growth story and the share price is not expected to rise much: even if the market gains 10%, the holder still lags.
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When we return, we will be discussing today's main earnings report, which is Verizon's report. We will talk about it more shortly. It looks strong, yet the stock price has fallen by about 2.2% today alone.
Over the past week or month, it has fallen by about 6.5%. Much of this decline is due to people's concerns about the launch of Starlink on the market.
Yes, the numbers look great. For example, Verizon, to name just one example, saw net additions to prepaid phones exceed 400,000 units, its best figure in 5 years for the third quarter. 137,000 new accounts were added .
This is after accounting for the cancellation rate and the like. It's the best performance in over a decade. People are still subscribing, adding new subscriptions to Verizon. Expectations have risen for the third consecutive quarter.
For example, Verizon, to name just one example, saw net additions to prepaid phones exceed 400,000 units, its best figure in 5 years for the third quarter. 137,000 new accounts were added.
This is after accounting for the cancellation rate and the like. It's the best performance in over a decade. People are still subscribing, adding new subscriptions to Verizon. Expectations have risen for the third consecutive quarter.
But yes, you hit the nail on the head when you said that the stock did indeed fall by 6% over the past month, and that's due to the impact of SpaceX.
Verizon CEO Dan Schulman has made some very strong statements about this. Yes, Lou, this company has always been one that relies on dividends. But we are now at a dividend yield of 6.5%.
I came away with the impression that they raised expectations in every possible way. What more could you want from Verizon at this point?
Yes, it is the specter of the future that could negatively affect this stock. But look, the competition is fierce here now. For this reason, it is not considered a growth story.
I don't think that SpaceX's eventual entry— and I emphasize the word " eventually"—will really destroy the business, because, as I mentioned, no one has the power to set the prices.
We've already seen what this sector looks like with four players , and the situation was bad enough for us to move to three. In any case, this is the reality. I think Schumann exaggerates the story of SpaceX's capital expenditures.
Therefore, I believe that some words are self- serving.
I would also like to point out that if SpaceX enters, what will that mean for Verizon, AT& T, and T-Mobile's capital expenditures going forward ? Because I think they need to answer some of these questions about what Starlink can add, as well as Starlink's investment as well.
But yes, I don't think this business is an inspiring growth stock . It's a very attractively valued stock, and most of the SpaceX news is just hype, at least for the next few years.
Yes, the challenge is that the return looks great , but you don't get a huge increase in the share value. Even if the market rises by 10%, you will still be a loser.