Avoid Verizon, AT&T, and T-Mobile: US Wireless Market May be in Trouble

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Verizon Communications ($NYSE:VZ) Inc. is a leading U.S. telecommunications and technology company with a long history of providing reliable, innovative services to customers.

However, recent developments in the wireless market suggest that it may be wise to avoid investing in Verizon, AT&T, and T-Mobile right now. The U.S. wireless market appears to be in disarray, as many of the biggest players are experiencing declining customer numbers and saturation in certain markets. On top of this, the competition is growing fiercer as new entrants try to gain a foothold in the market. To make matters worse, AT&T and Verizon have recently reduced the benefits of their unlimited plans, making them less attractive to customers. It is therefore advisable to stay away from Verizon, AT&T and T-Mobile for the time being, as their current performance may indicate that the U.S. wireless market could be heading for trouble in the near future. Investors should look for more innovative opportunities and consider other players in the telecom industry as well.

Share Price

On Friday, VERIZON COMMUNICATIONS stock opened at a price of $35.5 and closed at the same price, only rising 0.1% from its previous closing value of 35.4. It is becoming increasingly clear that consumers should avoid investing in Verizon, AT&T, and T-Mobile, as the wireless market is showing signs of potentially declining. This trend may continue in the future, leading to further losses for investors in these telecom companies. It is best to err on the side of caution and avoid investing in these companies until the market has stabilized. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Verizon Communications. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Verizon Communications. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Verizon Communications. More…

Key Ratios Snapshot

Some of the financial key ratios for Verizon Communications are shown below. More…

Analysis

GoodWhale can help you analyze VERIZON COMMUNICATIONS‘s fundamentals. Our Risk Rating shows that VERIZON COMMUNICATIONS is a medium risk investment in terms of financial and business aspects. We have detected 3 risk warnings in their income sheet, balance sheet, and cashflow statement. To get the full picture, make sure to register on GoodWhale.com and check out our detailed analysis. More…

Peers

Verizon Communications Inc is a leading telecommunications, Internet, and television provider in the United States. It has a wide range of competitors, including AT&T Inc, T-Mobile US Inc, America Movil SAB de CV. Each of these companies has its own strengths and weaknesses, but Verizon is generally considered to be a leader in the industry.

– AT&T Inc ($NYSE:T)

AT&T Inc. is an American multinational conglomerate holding company headquartered at Whitacre Tower in Downtown Dallas, Texas. It is the world’s largest telecommunications company, the second largest provider of mobile telephone services, and the largest provider of fixed telephone services in the United States through AT&T Communications. Since June 14, 2018, it also owns the media conglomerate WarnerMedia, making it the world’s largest entertainment company in terms of revenue. As of 2021, AT&T is ranked #9 on the Fortune 500 rankings of the largest United States corporations by total revenue.

AT&T Inc. has a market cap of 110.74B as of 2022 and a Return on Equity of 12.91%. AT&T is the world’s largest telecommunications company and the second largest provider of mobile telephone services. The company also owns the media conglomerate WarnerMedia, making it the world’s largest entertainment company in terms of revenue.

– T-Mobile US Inc ($NASDAQ:TMUS)

T-Mobile US, Inc., together with its subsidiaries, provides mobile communications services in the United States, Puerto Rico, and the U.S. Virgin Islands. The company offers voice, messaging, and data services to approximately 79 million customers as of the end of 2019. It also provides wireless devices, including smartphones, tablets, and other mobile communication devices; and accessories that are manufactured by various suppliers. In addition, the company offers its services to business and government customers; and wholesale customers, such as mobile virtual network operators and other telecommunications carriers. T-Mobile US, Inc. was founded in 1994 and is headquartered in Bellevue, Washington.

– America Movil SAB de CV ($OTCPK:AMXVF)

America Movil SAB de CV, also known as Telcel, is a Mexican telecommunications company headquartered in Mexico City, Mexico. As of 2022, it is the largest mobile network operator in Mexico, with a market share of approximately 70%. Telcel also provides fixed-line, broadband, and pay TV services in Mexico. The company was founded in 1972 and is a subsidiary of America Movil.

Summary

Verizon Communications is currently facing a challenging market landscape, as the US wireless market is oversaturated and competitive. Analysts recommend avoiding investing in Verizon due to their weak competitive positioning, high debt, and declining profit margins. They are currently overburdened by high-cost spectrum assets, and their pricing plans are hurting their revenue growth.

Additionally, their large customer base is seen as a potential risk, as a significant portion of their customers are likely to switch providers in the near future. Despite their strong brand recognition, Verizon’s business strategy is seen as unsustainable in the current market environment.