Verizon Communications completed a US$3.75 billion offering of fixed-to-floating, callable junior subordinated notes due 2057 and 2059, a move that directly addresses balance sheet flexibility as competitive and capital intensity risks rise. The financing comes as investor attention sharpens around mounting competitive pressure from SpaceX's planned Starlink Mobile direct-to-cell service, which could challenge Verizon's core wireless business model. The company also expanded its Verizon Family app through a new Fi Mini pet-tracking integration and addressed recent service-disrupting vandalism and public safety operations, though these do not materially change the core investment case. Analyst projections show Verizon's revenue reaching US$147.7 billion and earnings US$22.4 billion by 2029, with a fair value estimate of US$51.90 per share, implying a 10% upside from the current price. More cautious estimates assume only about 1.2% annual revenue growth to roughly US$143.8 billion and earnings near US$21.6 billion, raising the question of whether Starlink Mobile and heavy 5G or fiber needs make that outlook more realistic than the optimistic catalyst of disciplined convergence growth and AI efficiency gains.
Verizon Communications IncVerizon prices $3.75B in junior subordinated notes, increasing debt and financial risk.
