Google Inc (NASDAQ:GOOG) is growing its Google Inc (NASDAQ:GOOG) fiber business. In another article I wrote several weeks ago; I estimated that Google will put a lot of cable providers out of business (Century Link, and Cox Communication). Not only that, I estimated that if Google was to secure 10% of the market through its Google Inc (NASDAQ:GOOG) Fiber service, it could potentially generate $12 billion per year in revenue. Verizon’s FiOS grew revenue by 15% year-over-year, proving to Google that there’s a remarkably large and growing market opportunity for faster internet speeds (I mean who wouldn’t want to download a high definition movie in less than a minute?). Google plans to launch its Google Fiber services in six additional cities in Kansas. Google is launching a sweeping roll out of Google Fiber in Austin, Texas and Provo, Utah. Google believes that its product is going to become a financial success, and based on the encouraging data we got from Verizon’s own fiber-optic service; we can only assume that Google will continue to roll out its internet services throughout the United States.
Verizon Communications Inc. (NYSE:VZ) posted a solid quarter that was able to meet analyst earnings targets. Verizon’s efforts to keep costs under control along with the solid revenue growth of 4.2% allowed net-income to grow by an impressive 24.3% for the current quarter. Analysts anticipate the net-income to grow by 19.50% for the current fiscal year. The company seems to be well on track to meeting those targets which should keep shareholder up-beat on the company’s performance.
Verizon Communications Inc. (NYSE:VZ) offers an impressive 3.94% dividend yield along with solid earnings growth. Investors who want a stable source of income along with stock appreciation should be married to the company. But since we can’t marry companies we’d technically have to buy them.
The article Verizon Is the Perfect Leading Indicator for Apple originally appeared on Fool.com and is written by Alexander Cho.
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