U.S. stock markets were closed Friday for the Independence Day holiday, but Verizon Communications Inc. (NYSE: VZ) ended its last trading session on Thursday at $42.56, a 1.36% gain for the day. However, the stock remains down 8.55% for the week, reflecting persistent investor concerns about competitive pressures from SpaceX's Starlink satellite network.
The upcoming dividend of $0.7075 per share, representing roughly 1.7% of Thursday's closing price, seems minor compared to the week's steep decline. Over the past five days, Verizon has lost approximately $16.6 billion in market value, based on its $177.71 billion market capitalization.
Starlink Fears Weigh on Telecom Sector
The selloff wasn't limited to Verizon. AT&T Inc. (NYSE: T) dropped 9.42% over the same period, while T-Mobile US Inc. (NASDAQ: TMUS) lost 2.82%. All three telecom giants face headwinds from SpaceX's Starlink, which plans to connect regular mobile phones in urban areas, not just rural homes or aircraft. According to The Wall Street Journal, SpaceX President Gwynne Shotwell has discussed building a ground-based network to support this initiative.
Oppenheimer analyst Timothy Horan warned that investors may be underestimating the risks from low-earth-orbit satellite broadband. Reuters reported that Starlink could intensify competition for cable companies and potentially lead to subscriber and revenue losses for AT&T, Verizon, and T-Mobile.
Verizon's Turnaround Efforts
Despite the market headwinds, Verizon continues to push its turnaround strategy. CEO Dan Schulman stated in April that first-quarter results showed the turnaround was gaining momentum, with the company raising its 2026 adjusted EPS growth target to 5-6%. Verizon reported its first positive first-quarter postpaid phone net adds since 2013, along with adjusted EBITDA of $13.4 billion and free cash flow of $3.8 billion.
The company has also reduced activation and upgrade fees, launched a new loyalty program in mid-June, and maintained its 2026 financial guidance. Interim CEO of Verizon Consumer Group, Alfonso Villanueva, told Reuters, "How do we create a value proposition that makes sense for every cohort?" He added, "We are convinced that our retention will be even higher."
International Joint Venture
Verizon recently announced a joint venture with BT Group (LON: BT.A) to merge their international enterprise units in a 50:50 partnership, creating a $4 billion annual revenue operation. Verizon will pay BT $625 million as part of the deal. BT CEO Allison Kirkby described the market as "very fragmented," while Schulman said the joint venture provides international customers "the clear answer" for cross-border cloud services.
Market Context
On Thursday, Verizon's modest 1.36% gain lagged the broader telecom sector's 3.39% rise, as measured by the WSJ telecom services group. The Dow Jones Industrial Average climbed 1.14%, while the S&P 500 remained nearly flat at 7,483.24, and the Nasdaq Composite fell 0.80%.
Looking ahead, Verizon's ex-dividend date is July 10, with the payment scheduled for August 3. The company will report second-quarter earnings on July 24, with a conference call at 8:30 a.m. ET. Investors will be watching closely to see if the turnaround narrative can overcome the competitive threat from SpaceX.
