NEW YORK, June 30, 2026, 09:05 (EDT)
- Verizon traded at $44.10 before the bell, down roughly 5.3% from its last close. SPY gained around 1.7%.
- The implied market value drop came to about $10.4 billion, which is around 16 times Verizon’s $625 million payment to BT.
- At that level, Verizon’s annualized dividend yield goes up to around 6.4%. The payout run-rate is almost 55% of the company’s 2026 free cash flow guidance of more than $21.5 billion.
Verizon Communications Inc. NYSE:VZ started trading Tuesday in New York with investors focusing more on the company’s competitive risk than on its international deal with BT Group Plc (LON:BT.A).
U.S. cash markets weren’t open yet in New York. The NYSE lists its core hours as 9:30 a.m. to 4 p.m. Eastern, with its next 2026 closure for Independence Day observed on July 3, not June 30. Nasdaq shows the same core hours and a pre-market period from 4 a.m. to 9:30 a.m. Eastern.
Verizon shares traded at $44.10 as of 8:49 a.m. ET, down $2.465, or 5.3%, from the previous close. That put the company’s market cap near $185.7 billion. In premarket trading, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) and Communication Services Select Sector SPDR Fund (NYSEARCA:XLC) were both up.
| Security | Pre-open price | Implied move vs prior close | Read-through |
|---|---|---|---|
| Verizon Communications Inc. NYSE:VZ | $44.10 | -5.3% | Carrier discount got wider |
| AT&T Inc. NYSE:T | $21.82 | -4.1% | Legacy wireless business sold |
| T-Mobile US Inc. NASDAQ:TMUS | $173.97 | -4.8% | Peer risk moves over |
| Charter Communications Inc. NASDAQ:CHTR | $146.17 | +9.4% | Cable option buyers step in |
| Comcast Corp. NASDAQ:CMCSA | $24.22 | +4.4% | Broadband names bid |
| Communication Services Select Sector SPDR Fund (NYSEARCA:XLC) | $107.88 | +1.6% | Sector up |
| SPDR S&P 500 ETF Trust (NYSEARCA:SPY) | $741.00 | +1.7% | Market trading up |
The issue isn’t just Verizon’s BT payment. Verizon shares dropped before the open, suggesting a hit of around $10.4 billion to its equity value, based on the market-cap feed’s roughly 4.21 billion-share figure. That’s about 16.6 times the $625 million Verizon agreed to pay BT, and about 2.6 times the $4 billion or so in annual revenue from the joint venture.
Verizon and BT plan to merge their international enterprise units in a 50-50 joint venture, the companies said Monday. The deal would create an operation with over 3,000 customers in more than 180 countries. They expect to close in 2027. Verizon CEO Dan Schulman said global clients need “secure, flexible connectivity” for cross-border and cloud needs, calling the proposed venture “the clear answer.” Verizon
| Verizon mark-down math | Figure |
|---|---|
| Shares indicated pre-market | $44.10 |
| Implied close from yesterday | $46.57 |
| Company’s market cap now | $185.7 billion |
| Equity value drop from last close | $10.4 billion |
| Verizon cash out to BT | $625 million |
| Value gone / BT payout | 16.6x |
| Total JV revenue per year | about $4.0 billion |
| Value drop / JV revenue | 2.6x |
| Yearly dividend per share | $2.83 |
| Yield with stock at $44.10 | about 6.4% |
| Estimated yearly cash for dividend | about $11.9 billion |
| Annual dividend as % of projected FCF 2026 | about 55% |
Investors care because of cash. Verizon set a 70.75-cent quarterly dividend on June 4, payable Aug. 3 to holders as of July 10, and reported around 4.2 billion shares out. Schulman said the “dividend remains ironclad.” In April, Verizon’s outlook called for 2026 free cash flow of at least $21.5 billion. Verizon
The new price pushes the yield from around 6.1% at Monday’s implied close to roughly 6.4% ahead of the open. But that’s only appealing if investors believe the cash flow outlook and aren’t bracing for much higher spending to shore up wireless and broadband share.
SpaceX NASDAQ:SPCX is moving into the mobile market. Reuters said June 26 that SpaceX told investors it’s working on a Starlink mobile service for U.S. consumers. That service could compete with Verizon, AT&T, and T-Mobile. Reuters, also citing Bloomberg News, said SpaceX and Charter talked at the executive level about a U.S. consumer mobile phone deal.
Oppenheimer analyst Timothy Horan summed up the bear view in a note cited by MarketWatch: “SpaceX will disrupt the $1.6 [trillion] communications industry.” MarketWatch
BT chief Allison Kirkby called the Verizon move consolidation, not a pullback. “This is a very fragmented market and this could be the start of further consolidation,” she said to Reuters. Kirkby also said BT may consider adding third parties in the future. The Edge Malaysia
Verizon’s first quarter had something for bulls. Revenue came in at $34.4 billion, and free cash flow was $3.8 billion. Postpaid phone net adds landed at 55,000. Verizon lifted its adjusted EPS guidance, now looking for 5% to 6% growth. Unsecured debt at quarter’s end was $142.5 billion, net unsecured debt $130.1 billion.
