Verizon CEO Schulman Appointment Triggers Nearly 5% Stock Drop

Verizon Communications experienced a sharp decline in its stock price, falling nearly 5%, following a surprise leadership change with Dan Schulman, former CEO of PayPal, appointed as the new CEO. Hans Vestberg, who had led Verizon since 2018, is transitioning to a special adviser role to assist with the Frontier Communications acquisition. The market reacted with uncertainty to the leadership shift amidst challenges of slowing subscriber growth and increased competition in the wireless sector. Analysts highlight the new CEO's task of balancing pricing strategies and subscriber growth while maintaining financial stability, noting potential risks if competitive pressures are not managed well. Despite these challenges, some firms like Evercore ISI maintain an "Outperform" rating on Verizon, anticipating operational adjustments to drive growth. Investors remain cautious about how Verizon's strategic changes under Schulman will affect industry competitiveness and profitability, particularly concerning pricing and promotional tactics.