What's Going On With Verizon Shares
Portfolio Pulse from Henry Khederian
Verizon Communications Inc. (NYSE:VZ) shares are trading lower by 2.2% to $30.76, likely due to a market-wide drop in stocks following the release of September's Consumer Price Index (CPI) data. The CPI data revealed a year-on-year increase of 3.7%, surpassing expectations. This could lead to concerns about inflation, potentially affecting consumer spending on services offered by Verizon. Higher interest rates could also increase Verizon's debt interest, impacting its profitability and stock price.
October 12, 2023 | 7:03 pm
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Verizon's stock price is declining due to market-wide drop in stocks following the release of higher than expected CPI data. This could lead to reduced consumer spending on Verizon's services and increased debt interest.
The higher than expected CPI data indicates rising inflation, which could lead to reduced consumer spending, particularly on discretionary items like communication and entertainment services offered by Verizon. Additionally, if the Federal Reserve raises interest rates to combat inflation, Verizon's interest payments on its debt could increase, impacting its profitability and stock price.
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