Verizon Explained (Simply): Why VZ Stock Is Moving Right Now

Verizon Explained (Simply): Why VZ Stock Is Moving Right Now

If you’ve checked your brokerage account lately, you might’ve noticed things look a little different for the big red "V." Honestly, tracking what is the stock price of verizon used to be about as exciting as watching paint dry. It was a "widow and orphan" stock—something you bought for the dividend and then forgot about for a decade. But 2026 has been a bit of a rollercoaster for the telecom giant.

Right now, as of mid-January 2026, Verizon (VZ) is trading around $39.50 to $39.85.

It’s been a weird week. Just yesterday, January 14, the company dealt with a massive nationwide network outage that left thousands of people staring at "SOS mode" on their iPhones. Usually, that’s the kind of PR nightmare that sends a stock into a tailspin. Instead? The stock actually climbed about 2%. Investors basically shrugged and said, "It happens."

The Schulman Shakeup

The real story isn't the outage; it’s the guy in the corner office. Dan Schulman, the former PayPal boss, took over as CEO late last year, replacing Hans Vestberg. He didn't waste any time. He immediately cut over 13,000 jobs. It sounds harsh, but Wall Street loved it because it pushed Verizon's revenue-per-employee up to a staggering $1.35 million.

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Schulman is pivoting the company toward a "Value Pivot." Basically, they’re done with the constant price hikes that were driving customers away to T-Mobile. They’ve launched three-year price locks and massive family plan discounts to keep people from jumping ship.

What is the stock price of verizon telling us about the future?

When you look at the chart, you see a company trying to find its footing after losing about 35% of its value since 2020. It's currently trading at a price-to-earnings (P/E) ratio of roughly 8.4x. To put that in perspective, the average S&P 500 company is trading at over 25x. Verizon is cheap. Kinda ridiculously cheap, actually.

But there’s a catch. Or a few catches.

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  • The Debt Load: Verizon is carrying a mountain of debt, largely from building out its 5G network.
  • The Frontier Merger: They are currently trying to close a $20 billion acquisition of Frontier Communications. It's a "fiber-first" strategy, but regulatory hurdles are still a thing.
  • Earnings Watch: The big date on the calendar is January 30, 2026. That’s when Verizon reports its Q4 2025 earnings. It’ll be Schulman’s first full quarter in charge, and everyone is watching to see if his "Schulman Strategy" is actually working.

The Dividend: The Only Reason Most People Stay

If you own VZ, you’re probably in it for the check. The dividend yield is currently sitting at a juicy 6.9%. They just went ex-dividend on January 12, with the next payment of $0.69 per share hitting accounts on February 2, 2026.

Is the dividend safe? Most analysts think so. The payout ratio is under 60%, meaning they have plenty of cash coming in to cover the checks, even while they pay down debt. They've raised that dividend for 21 consecutive years. They aren't going to break that streak unless something goes catastrophically wrong.

What the Pros are Saying

The "smart money" is split. You've got guys like Benjamin Swinburne at Morgan Stanley setting a price target of $47.00, while others are a bit more cautious, eyeing the $41 range. The consensus "Moderate Buy" rating is holding steady, but there's a clear technical signal that the stock recently dipped below its 50-day moving average. In plain English: the short-term momentum is a bit shaky.

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Interestingly, big players like BlackRock and State Street actually added millions of shares to their positions toward the end of last year. They seem to be betting that the bottom is in and that the shift toward fiber and 5G "network slicing" (a techy way of saying premium internet for AI and businesses) will eventually pay off.

Actionable Next Steps

If you're looking at what is the stock price of verizon as a potential entry point, don't just dive in headfirst. The January 30 earnings report is going to be a "make or break" moment for the current rally.

  • Watch the $40 level: If the stock can break and hold above $40.50 after earnings, it might finally signal a long-term trend reversal.
  • Check the Frontier News: Keep an eye on any updates regarding the Frontier Communications merger. Any regulatory "no" would likely cause a short-term drop.
  • Income vs. Growth: Recognize that VZ is an income play. If you're looking for a stock that’s going to double in a year, this isn't it. If you want a 7% yield while you wait for a turnaround, it’s a classic value play.

Monitor the price action leading up to the end of the month. If the market continues to rotate out of "expensive" tech stocks and into "defensive" value stocks, Verizon might finally get its day in the sun.