What Happened?
Shares of telecommunications giant Verizon (NYSE: VZ) fell 3.9% in the afternoon session after the U.S. Supreme Court ruled against the company, backing the Federal Communications Commission's (FCC) authority to fine it for mishandling customer location data.
The 8-1 decision confirmed the FCC can levy fines without involving a jury. The ruling relates to the agency's conclusion that Verizon unlawfully sold access to its customers' location data to third parties without their consent, resulting in a fine of nearly $47 million. According to reports, this data was then used by third parties to track people. This outcome intensifies the regulatory and legal risks for the telecommunications giant.
After the initial drop, the shares shed some of the losses and rose to $44.86, down 3.8% from the previous close.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Verizon? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Verizon’s shares are not very volatile and have only had 2 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 11 months ago when the stock gained 5.1% on the news that the company reported second-quarter earnings and raised its full-year financial guidance.
The company announced it now expects full-year free cash flow to be between $19.5 billion and $20.5 billion, a significant increase from the previous forecast of $17.5 billion to $18.5 billion. Free cash flow, which is the cash left over after a company pays for its operating expenses and capital expenditures, is a key metric for investors, particularly for a high-dividend stock like Verizon.
For the quarter, Verizon reported adjusted earnings per share of $1.22 on revenue of $34.5 billion, beating analyst expectations. The company also raised the lower end of its forecast for full-year adjusted earnings growth. While the company saw a net loss in postpaid phone subscribers, a closely watched metric, the strong financial outlook and improved cash flow forecast appeared to outweigh those concerns for investors.
Verizon is up 10.7% since the beginning of the year, but at $44.86 per share, it is still trading 12.7% below its 52-week high of $51.38 from March 2026. Despite the year-to-date gain, investors who bought $1,000 worth of Verizon’s shares 5 years ago would now be looking at only $782.86.
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