Why Verizon Communications Inc. (VZ) Went Down on Tuesday

We recently compiled a list of the 10 Stocks Battered by Bearish Outlooks. In this article, we are going to take a look at where Verizon Communications Inc. (NYSE:VZ) stands against the other stocks.

Ten firms ended Tuesday suffering a sell-off, as investor sentiment continues to be dampened by macroeconomic uncertainties and bearish outlooks from analysts and their management.

The stocks–three of which belong to the travel and tourism industry–registered losses following lower outlook guidance, taking into account the potential effects of President Donald Trump’s trade war with other countries.

The pessimistic sentiment mirrored the broader market decline, with the Dow Jones slashing another 1.14 percent during the day, the S&P dropping 0.76 percent, and the Nasdaq dipping 0.18 percent.

To come up with the list, we considered only the stocks with at least $2 billion in market capitalization and $5 million in trading volume.

A smiling customer receiving customer contact center solutions on their smartphone.

Verizon Communications Inc. (NYSE:VZ)

Verizon Communications Inc. (NYSE:VZ) snapped a three-day winning streak on Tuesday, losing 6.58 percent to end at $43.43 apiece as investor sentiment was dampened by expectations of lower subscriber count in the quarter.

At a conference organized by Deutsche Bank on Tuesday, Verizon Communications Inc. (NYSE:VZ) Chief Revenue Officer Frank Boulben said that the company expects soft subscriber growth after a challenging quarter, primarily due to growing competition coupled with the impact of price increases.

In a regulatory filing, gross new additions in the first quarter are expected to go flat or down from a year earlier.

Last January, Verizon Communications Inc. (NYSE:VZ) raised its prices for customers with five or more phone lines and those on older mobile plans that it no longer offers.

Overall VZ ranks 8th on our list of Tuesday’s worst performers. While we acknowledge the potential of VZ as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than VZ but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.