Verizon Provides $20 Credits Following Resolution of Widespread Outage
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 15 2026
0mins
Should l Buy TMUS?
Source: Barron's
Service Disruption: Verizon Communications experienced a significant outage that affected millions of customers' ability to text or call for several hours on Wednesday.
Resolution and Compensation: The issue has been resolved, and Verizon is offering $20 credits to affected customers, although they have not disclosed specific details about the cause of the outage.
Discover Tomorrow's Bullish Stocks Today
Analyst Views on TMUS
Wall Street analysts forecast TMUS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for TMUS is 265.42 USD with a low forecast of 220.00 USD and a high forecast of 310.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
21 Analyst Rating
15 Buy
6 Hold
0 Sell
Moderate Buy
Current: 197.210
Low
220.00
Averages
265.42
High
310.00
Current: 197.210
Low
220.00
Averages
265.42
High
310.00
About TMUS
T-Mobile US, Inc. is a provider of wireless communications services, including voice, messaging and data, under its flagship brands, T-Mobile and Metro by T-Mobile, and Mint Mobile, in the United States, Puerto Rico and the United States Virgin Islands. It provides wireless communications services primarily using its 4G Long Term Evolution network and its 5G technology network. It also offers a selection of wireless devices, including handsets, tablets and other mobile communication devices, and accessories for sale, as well as financing through equipment installment plans. Its primary service plan offering is Go5G Plus, which includes unlimited talk, text and data on its network, 5G access at no extra cost, scam protection features and more. In addition to its wireless communications services, the Company also offers high speed Internet, which includes a fixed wireless product that utilizes the excess capacity of its nationwide 5G network. It also provides advertising solutions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Bullish Outlook for AT&T's Future
- Market Potential Analysis: AT&T Inc.'s share price was $25.13 as of January 29, with trailing and forward P/E ratios of 8.27 and 11.38, indicating its attractiveness in the telecommunications sector, especially as wireless capacity reaches a breaking point.
- Infrastructure Advantage: AT&T's extensive fiber infrastructure and deep spectrum position place it at the center of the industry's shift towards fiber, which is expected to benefit from long-term capacity demands, enhancing its competitive strength.
- Strategic Execution: The company is methodically expanding its fiber footprint and converting fixed wireless users into high-value fiber customers, which is anticipated to bolster its market position and drive future earnings growth.
- Improved Financial Health: Following its restructuring, AT&T has achieved disciplined capital allocation and improved free cash flow, and combined with shifting industry dynamics, this is expected to create significant re-rating opportunities for the company.
See More
AT&T's Subscriber Growth Drives 10% Stock Surge
- Significant Subscriber Growth: AT&T added 421,000 postpaid phone subscribers and 283,000 fiber subscribers in Q4, demonstrating the effectiveness of its bundled service strategy and solidifying its position in a competitive telecom market.
- Increased Fiber Convergence Rate: The convergence rate among AT&T's fiber customers who also subscribe to wireless services rose to 42%, up 200 basis points year-over-year, indicating substantial progress in integrating fiber and 5G services, which enhances customer retention.
- Strong Cash Flow: AT&T expects to generate $16.6 billion in free cash flow in 2024, projected to grow to over $21 billion by 2028, providing robust support for future shareholder returns.
- Stock Buyback Program: The company's board approved a $10 billion stock buyback program, coupled with a current 4.2% dividend yield, reflecting AT&T's commitment to shareholders and confidence in future growth.
See More
AT&T Shares Surge 10% Following Strong Quarterly Report and Growth Forecast
- Strong Financial Report: AT&T's quarterly results revealed an addition of 421,000 postpaid phone users and 283,000 fiber subscribers, indicating significant progress in customer acquisition and reinforcing its market leadership.
- Rising Fiber Convergence Rate: CEO John Stankey noted that the proportion of fiber customers subscribing to wireless services increased by 200 basis points year-over-year to 42%, marking the fastest growth since tracking began, showcasing the advantages of fiber and 5G integration.
- Robust Customer Retention: AT&T's postpaid churn rate remained below 1%, effectively retaining existing customers despite promotional activities from competitors like Verizon and T-Mobile, which bolstered investor confidence.
- Cash Flow and Buyback Plan: The company anticipates generating $16.6 billion in free cash flow in 2024, projected to rise to over $21 billion by 2028, while also announcing a $10 billion stock buyback program to enhance shareholder returns.
See More
Verizon's Strategic Shift: Redefining Growth
- Churn Rate Increase: Over the past three years, Verizon's churn rate has risen by 0.25 percentage points, which may seem minor, but each 0.01 percentage point increase corresponds to a loss of 90,000 net additions, resulting in a reduction of about 2.25 million net additions in 2025, highlighting the negative impact of price hikes on customer loyalty.
- Pricing Strategy Shift: CEO Dan Schulman indicated that previous price increases failed to deliver sufficient value to customers, and the company will no longer rely on empty price hikes to drive short-term revenue, instead focusing on winning subscribers and market share, which is a positive signal for investors.
- Future Growth Expectations: While wireless revenue is expected to remain flat in the short term, Verizon anticipates achieving between 750,000 and 1 million postpaid net phone additions in 2026, which is 2 to 3 times the additions in 2025, indicating a foundation for long-term growth.
- Stock Price Rebound: Following months of weakness, Verizon's stock surged 11.81% on Friday as investors welcomed the turnaround strategy; despite a weak wireless revenue forecast, the guidance for postpaid net phone additions instilled market confidence, with the current stock trading at less than 10 times the average analyst estimate for 2026 earnings, presenting an investment opportunity.
See More
Verizon Shifts Strategy to Combat Customer Churn
- Strategy Shift: Verizon's previous reliance on price hikes to drive revenue has led to increased churn, with CEO Dan Schulman emphasizing that empty price increases without corresponding value have contributed to market share losses.
- Significant Churn Impact: Over the past three years, Verizon's churn rate has risen by 0.25 percentage points, which, while seemingly small, translates to a loss of approximately 2.25 million net additions, significantly affecting the company's market performance.
- Future Growth Expectations: Although wireless revenue is expected to remain flat in the short term, Verizon aims to achieve between 750,000 and 1 million postpaid net phone additions in 2025, which is projected to be 2 to 3 times higher than the previous year, indicating confidence in future growth.
- Investor Confidence Restored: Following months of weakness, Verizon's stock surged as investors reacted positively to the turnaround strategy, with the guidance for postpaid net additions overshadowing the weak wireless revenue forecast, suggesting a potential recovery in market sentiment.
See More
Verizon's Strong Subscriber Growth Boosts Stock Price
- Significant User Growth: Verizon added 616,000 postpaid phone subscribers and 372,000 broadband subscribers in Q4, marking its highest quarterly net customer additions since 2019, indicating a resurgence in a competitive market.
- Stock Price Surge: Following the robust subscriber growth report, Verizon's stock price rose over 11%, closing at $44.52, reflecting market optimism about its future growth potential.
- Strong Financial Performance: Q4 operating revenue increased by 2% year-over-year to $36.4 billion, and although adjusted earnings per share slightly declined to $1.09, it surpassed Wall Street's estimate of $1.06, demonstrating the company's resilience in profitability.
- Optimistic Cash Flow Outlook: Verizon anticipates a 7% growth in free cash flow to at least $21.5 billion in 2026, driven by net additions of 750,000 to 1 million retail postpaid phone subscribers, indicating strong growth potential in the coming years.
See More
Bullish Outlook for AT&T's Future
- Market Potential Analysis: AT&T Inc.'s share price was $25.13 as of January 29, with trailing and forward P/E ratios of 8.27 and 11.38, indicating its attractiveness in the telecommunications sector, especially as wireless capacity reaches a breaking point.
- Infrastructure Advantage: AT&T's extensive fiber infrastructure and deep spectrum position place it at the center of the industry's shift towards fiber, which is expected to benefit from long-term capacity demands, enhancing its competitive strength.
- Strategic Execution: The company is methodically expanding its fiber footprint and converting fixed wireless users into high-value fiber customers, which is anticipated to bolster its market position and drive future earnings growth.
- Improved Financial Health: Following its restructuring, AT&T has achieved disciplined capital allocation and improved free cash flow, and combined with shifting industry dynamics, this is expected to create significant re-rating opportunities for the company.
See More
AT&T's Subscriber Growth Drives 10% Stock Surge
- Significant Subscriber Growth: AT&T added 421,000 postpaid phone subscribers and 283,000 fiber subscribers in Q4, demonstrating the effectiveness of its bundled service strategy and solidifying its position in a competitive telecom market.
- Increased Fiber Convergence Rate: The convergence rate among AT&T's fiber customers who also subscribe to wireless services rose to 42%, up 200 basis points year-over-year, indicating substantial progress in integrating fiber and 5G services, which enhances customer retention.
- Strong Cash Flow: AT&T expects to generate $16.6 billion in free cash flow in 2024, projected to grow to over $21 billion by 2028, providing robust support for future shareholder returns.
- Stock Buyback Program: The company's board approved a $10 billion stock buyback program, coupled with a current 4.2% dividend yield, reflecting AT&T's commitment to shareholders and confidence in future growth.
See More
AT&T Shares Surge 10% Following Strong Quarterly Report and Growth Forecast
- Strong Financial Report: AT&T's quarterly results revealed an addition of 421,000 postpaid phone users and 283,000 fiber subscribers, indicating significant progress in customer acquisition and reinforcing its market leadership.
- Rising Fiber Convergence Rate: CEO John Stankey noted that the proportion of fiber customers subscribing to wireless services increased by 200 basis points year-over-year to 42%, marking the fastest growth since tracking began, showcasing the advantages of fiber and 5G integration.
- Robust Customer Retention: AT&T's postpaid churn rate remained below 1%, effectively retaining existing customers despite promotional activities from competitors like Verizon and T-Mobile, which bolstered investor confidence.
- Cash Flow and Buyback Plan: The company anticipates generating $16.6 billion in free cash flow in 2024, projected to rise to over $21 billion by 2028, while also announcing a $10 billion stock buyback program to enhance shareholder returns.
See More
Verizon's Strategic Shift: Redefining Growth
- Churn Rate Increase: Over the past three years, Verizon's churn rate has risen by 0.25 percentage points, which may seem minor, but each 0.01 percentage point increase corresponds to a loss of 90,000 net additions, resulting in a reduction of about 2.25 million net additions in 2025, highlighting the negative impact of price hikes on customer loyalty.
- Pricing Strategy Shift: CEO Dan Schulman indicated that previous price increases failed to deliver sufficient value to customers, and the company will no longer rely on empty price hikes to drive short-term revenue, instead focusing on winning subscribers and market share, which is a positive signal for investors.
- Future Growth Expectations: While wireless revenue is expected to remain flat in the short term, Verizon anticipates achieving between 750,000 and 1 million postpaid net phone additions in 2026, which is 2 to 3 times the additions in 2025, indicating a foundation for long-term growth.
- Stock Price Rebound: Following months of weakness, Verizon's stock surged 11.81% on Friday as investors welcomed the turnaround strategy; despite a weak wireless revenue forecast, the guidance for postpaid net phone additions instilled market confidence, with the current stock trading at less than 10 times the average analyst estimate for 2026 earnings, presenting an investment opportunity.
See More
Verizon Shifts Strategy to Combat Customer Churn
- Strategy Shift: Verizon's previous reliance on price hikes to drive revenue has led to increased churn, with CEO Dan Schulman emphasizing that empty price increases without corresponding value have contributed to market share losses.
- Significant Churn Impact: Over the past three years, Verizon's churn rate has risen by 0.25 percentage points, which, while seemingly small, translates to a loss of approximately 2.25 million net additions, significantly affecting the company's market performance.
- Future Growth Expectations: Although wireless revenue is expected to remain flat in the short term, Verizon aims to achieve between 750,000 and 1 million postpaid net phone additions in 2025, which is projected to be 2 to 3 times higher than the previous year, indicating confidence in future growth.
- Investor Confidence Restored: Following months of weakness, Verizon's stock surged as investors reacted positively to the turnaround strategy, with the guidance for postpaid net additions overshadowing the weak wireless revenue forecast, suggesting a potential recovery in market sentiment.
See More
Verizon's Strong Subscriber Growth Boosts Stock Price
- Significant User Growth: Verizon added 616,000 postpaid phone subscribers and 372,000 broadband subscribers in Q4, marking its highest quarterly net customer additions since 2019, indicating a resurgence in a competitive market.
- Stock Price Surge: Following the robust subscriber growth report, Verizon's stock price rose over 11%, closing at $44.52, reflecting market optimism about its future growth potential.
- Strong Financial Performance: Q4 operating revenue increased by 2% year-over-year to $36.4 billion, and although adjusted earnings per share slightly declined to $1.09, it surpassed Wall Street's estimate of $1.06, demonstrating the company's resilience in profitability.
- Optimistic Cash Flow Outlook: Verizon anticipates a 7% growth in free cash flow to at least $21.5 billion in 2026, driven by net additions of 750,000 to 1 million retail postpaid phone subscribers, indicating strong growth potential in the coming years.
See More
