Bernstein Sees Tougher Competitive Landscape Taking Shape for Verizon (VZ) and Peers

Verizon Communications Inc. (NYSE:VZ) is included among the 15 Best S&P 500 Dividend Stocks to Buy in 2026.

Bernstein Sees Tougher Competitive Landscape Taking Shape for Verizon (VZ) and Peers

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On January 16, Bernstein cut its price target on Verizon Communications Inc. (NYSE:VZ) to $44 from $46, while sticking with a Market Perform rating. The firm said the industry looks like it is heading into a more aggressive phase of competition. Bernstein noted that through 2025, each quarterly update pointed to intensifying pressure, which ended up wiping out a big portion of the telecom gains seen in the first half of the year. At the same time, cable players continued to lose momentum in the second half, according to the firm. Bernstein expects this tougher competitive backdrop to carry into 2026 as well, with no clear signs of easing after recent strategic moves.

In other news, Reuters reported on January 15 that the California Public Utilities Commission approved Verizon’s $20 billion acquisition of fiber internet provider Frontier Communications, removing the last major hurdle for the deal to close that same day. As part of the approval, Verizon agreed to several conditions, including investing in 75,000 new fiber locations and constructing 25 new wireless towers to expand coverage in rural parts of California. Verizon also committed to additional broadband rollout requirements and pledged to provide free broadband service to many low-income households in the state for at least 10 years. Regulators added that Verizon will also expand its commitments to tribal communities under the agreement.

Verizon Communications Inc. (NYSE:VZ) operates as a holding company and, through its subsidiaries, delivers communication and technology services, along with information and streaming offerings, to consumers, businesses, and government customers.

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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 have limited downside risk. If you are looking for an AI stock that is more promising than VZ and that has a 100x upside potential, check out our report about the cheapest AI stock.

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Disclosure: None.