Verizon: 3 Key Takeaways for Long-Term Investors
2026-10-26 20:53
•The Motley Fool Team •The Motley Fool
••••••• •• Axe Cap view
Verizon’s Q3 Momentum: A Local Investor’s Angle
Verizon’s subscriber growth and new infrastructure deals hint at steady earnings; watch rand sensitivity.
Verizon’s recent Q3 numbers highlight a classic example of operational strength driving value. Adding 406,000 postpaid subscribers while slashing acquisition costs by 41% is impressive by any measure. More intriguing for South African investors is the $4 billion infrastructure push, especially the $2 billion dark fiber deal with Amazon Web Services. This signals a strong, recurring revenue stream linked to cloud and AI growth, sectors with only indirect exposure here via Naspers and Prosus’s global tech bets. While Verizon itself isn’t JSE-listed, rand volatility will influence returns as costs and revenues in USD flow through USD/ZAR. The company’s millimeter wave spectrum rollout taps into cost-efficient broadband growth, suggesting resilience even as global economic jitters persist. The risk: a stronger dollar could erode local returns, and slower-than-expected cloud adoption might cap upside. For South African investors, Verizon’s story translates to a watch on USD/ZAR and cautious optimism toward global tech infrastructure providers. this is just our opinion and not financial advice
Hold offshore exposure through Prosus or basket USD/ZAR positions while watching Verizon’s progress for signs of sustained infrastructure growth. Trim if the rand strengthens sharply or tech valuations come under pressure.
- USD/ZAR
- Prosus
- Strong USD eroding local returns
- Slower cloud infrastructure adoption impacting revenue growth
6/10
Verizon reported strong Q3 2026 results with 406,000 net postpaid phone subscriber additions while reducing acquisition costs by 41% year-over-year. The company secured $4 billion in infrastructure contracts with cloud providers, including a $2 billion dark fiber agreement with Amazon Web Services. Verizon is deploying millimeter wave spectrum to offer 1-gigabit Fixed Wireless Access broadband in metro areas, enabling high-speed coverage expansion without expensive fiber infrastructure costs.
Our take is based on reporting first published by The Motley Fool.