Any ideas why the drop? Typically in these kind of cases where there is a huge exodus, stock price goes up because the street favors these kind of things.
5 replies (most recent on top)
VZ stock will bounce back when the market stabilizes. No one knows the impacts the restructuring will have because Ill doubt they will release the numbers anytime soon and likely after they hire 2 for 1 at the salary of those leaving it will go up some. The ones getting a free ride all these years will need to step up and do their job its that simple.
When the VSP was announced the stock price did rise, as it did when VZ 2.0 was announced. It may move again if total numbers of employees leaving due to the VSP are released to the press.
The long term effects of the VSP will not be felt for a quarter or two after employees are truly gone. Once VZ has a couple of quarters under its belt without the VSP'ers and under the new org. structure, investors will have a much better idea whether the company can still execute at or near the levels it did before. If they can I don't expect to see much upward movement in the stock, if they can't I expect to see it take a hit.
Verizon is full of debt like most media companies the only thing holding it up is verizon buying there own stock
https://www.wsj.com/articles/verizon-to-buy-back-up-to-100-million-shares-1394232567
JP Morgan downgraded VZ stock earlier this week plus the whole market is down due to uncertainty of what is going on with Trump and China trade talks.
Its not only VZ. Its the entire Index