VZ - Why AT&T and Verizon Stocks Tanked on Thursday
2023-05-25 17:33:39 ET
The two leading U.S. telecom stocks, AT&T (NYSE: T) and Verizon (NYSE: VZ) , came under significant pressure on Thursday. The source of this was a media article about the market entry of a potentially powerful new rival. This put enough fear in investors to drive AT&T's share price down 5% on the day, while Verizon's suffered a nearly 3% decline.
That morning, The Wall Street Journal published an article stating that Dish Network (NASDAQ: DISH) is in discussions to sell plans for its wireless telecom service to customers through Amazon (NASDAQ: AMZN) . Citing "people familiar with the matter," the business newspaper wrote that the details of such plans might be announced as soon as next month.
Known chiefly as a satellite TV broadcaster, Dish has been acquiring mobile assets for years. The company spent roughly $30 billion on mobile spectrum licenses alone, according to the Journal 's reporting, and has been building out its network of cell towers in the U.S. for several years.
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Why AT&T and Verizon Stocks Tanked on Thursday