designer491
Summary
- Verizon continues to face the threat of a tech giant entering the domestic wireless space.
- The wireless giant has seen their net debt level swell to over $150 billion just as another competitive 5G wireless network hits the market.
- The stock will struggle to produce solid returns with the increasing competitive threats despite a large 7.6% dividend yield.
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The biggest risk to the Verizon Communications (NYSE:VZ) investment story has always been the entry of a tech giant into the wireless space. The wireless giant already faces an overly competitive market with 3 5G networks and the entry of another network partnered with a tech company like Amazon (AMZN) would be highly troubling. My investment thesis remains Neutral on the stock with the rumored entry of Amazon into the domestic wireless services space offsetting any benefits of the large 7.6% dividend yield.
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