Shares of Verizon tumbled Monday as investors pored over the details of the wireless company's modest second-quarter subscriber growth. On paper, the largest U.S. cellphone carrier bolstered its market-leading subscriber base, posting a net gain of 148,000 postpaid phone connections. Investors welcome growth in that column, which reflects the core of reliable customers who pay for phone service each month on a contract. Verizon's cheaper prepaid plans lost ground, however, after the exhaustion of federal Affordable Connectivity Program subsidies forced many cash-strapped customers to drop their lines. Second lines offer milder revenue and growth opportunities than a brand-new client.

Source: Wall Street Journal July 22, 2024 17:29 UTC