Verizon: ‘Change’ Will Not Derail Bullish Rally
Customer satisfaction is certainly an important part of business and can have clear impacts on how a stock performs, but this is not always the most important thing to look at. While many customers may complain about recent changes with Verizon (VZ), the company remains in a decent position. It is generally handling the difficult events quite well, so there should not be too much worry here.
Verizon has had a great year so far, up almost twice the Dow Jones average increase. Verizon’s up over 10% from the start of 2012 and up over $7 in the last three months. Nearing its 52-week high, Verizon is now trading close to $45, and this should excite any interested party.
Verizon will have many disappointed customers, as it has become clear that Verizon FiOS TV customers will finally be subject to the restrictions from CableCARD. This will alter the copying options, and customers will lose benefits that they currently enjoy. While this has been a long time coming, I would not be surprised if some customers were only planning to keep FiOS TV until these restrictions took effect. Verizon may begin losing customers and struggle to bring new customers in, as this will remove a real competitive edge.
This is not the only upsetting news for customers, as Verizon is also one of several companies that have delayed their anticipated releases of the Samsung Galaxy S3. Verizon initially planned to release the phone on July 10, but it has pushed this back slightly as a result of higher demand.To continue reading, click here.