Verizon’s actions fall while subscriptions of corporate wireless services and broadband collapse

• Verizon’s actions fall while the first quarter profits have less growth.
• The new subscriptions are beginning to decrease compared to the year and the previous quarter.
• The Dow Jones triggers 1.7% while the market awaits Tesla’s profits.
• Vz’s actions break below the 200 -day mobile average.

Verizon (VZ) He sold shares on Tuesday after publishing the profits of the first quarter in the premarket, quickly becoming the member with the worst performance of the industrial average Dow Jones (DJI).

VZ’s shares lost around 3.2% at their lowest point, but they have risen thanks to a general bounce in the stock market and are 1.3% lower at the time of writing. The Dow has won an impressive 1.7% at the same time that the market is excited by Tesla (TSLA) earningswhich will be published after Tuesday’s closure.

Verizon managed to overcome the consensus of Wall Street both on the upper and lower line, however, the market focused on the fall of new telephone and internet additions.

Verizon shares earning news

Verizon’s shareholders are probably disappointed that the price of shares was not rewarded by the most important quarterly results. But, on the other hand, the market always looks forward and only sees storm clouds.

Verizon reported a benefit per action (BPA) adjusted of $ 1.19, compared to a consensus of $ 1.15. Likewise, the income reached 33.5 billion dollars, which was approximately 220 million dollars above consensus and an increase of 1.5% compared to the previous year.

So far, so good. But where investors were back is in the data on new subscribers. Yes, they are still growing, but the growth rate has struck.

For broadband Internet, Verizon added 339K new net subscribers. It may sound good, but this was a 17% drop compared to the fourth quarter of last year and a 13% decrease compared to the same quarter of the previous year.

Also, Verizon only added 94,000 new net postpago wireless business subscribers. This represented a 67% decrease in the new intertrametral additions and a year -year decrease in 63%. These falls in added subscribers would seem to tell us that US consumers are going back significantly.

Similarly, and to complete our history of negative growth perspectives, income from wireless equipment (mainly phones, tablets and other connected devices) fell by 28% compared to the last quarter.

Verizon’s address confirmed its perspective by 2025, but added the remarkable exception that the perspective It did not include the effects of the new tariff regime of President Donald Trump. It would seem that this was added to let the market know that the management has no idea what comes next in its industry.

Verizon shares prognosis

Verizon’s actions briefly fell below their simple mobile average (SMA) of 200 days. This is a bad sign for the bullies, since it means that this mobile average is probably folds completely in future sessions. A break there means that VZ shares will probably sink to the psychological level of $ 40 or medium -term support seen at $ 38.75.

Verizon shares will need to recover the level of $ 43 that has acted as a first focus of resistance if they want the bulls to return to the contest. Telecommunications actions such as Verizon are normally seen as safer options during recessions. With nothing less than JPMorgan, predicting that a recession is more likely, VZ’s shares should see buyers arrive to save them from any territory below $ 38.75.

VZ Shares Daily Chart