Verizon: A Strategy To Lose Market Share (Archive)
Verizon is trading margin protection for growth, risking a slow bleed in market share.
This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.
Elevator Pitch
- In the Q4 FY22 earnings call, management made their priorities clear; margins over growth, near-term shareholder return over long-term technology leadership.
- This strategy makes sense when you look at Verizon's customer mix; a higher portion of older customers with higher incomes and laggard technology adoption habits.
- But the current path is likely to continue, leading to higher churn rates, declining market shares and a worse customer LTV profile. This is a recipe for industry underperformance.
Read the full article here.
Disclosures and Disclaimers
Past performance ≠ future results. Not investment advice. See full Disclaimer.
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