To The Moon

$Verizon(VZ)$’s second-quarter results offered the clearest evidence yet that its turnaround is improving customer growth. The shares rose 5.9% on July 24 even though total revenue missed expectations, showing that investors placed greater weight on subscriber additions, cash flow and higher guidance.

Verizon added 184,000 postpaid phone customers, producing its strongest consumer second-quarter result in five years. Across mobility and broadband, total net additions exceeded 550,000—more than 230,000 higher than a year earlier. Mobility and broadband service revenue increased 2.8%. Verizon’s July 24 earnings release provides these operating figures.

Adjusted earnings reached $1.30 per share, slightly above expectations. Verizon raised its full-year adjusted earnings forecast to $4.99–$5.04 per share and now expects free cash flow to grow 9%–10%, compared with its previous forecast of at least approximately 7%. Reuters’ July 24 analysis explains the guidance changes.

Total revenue nevertheless declined 0.7% to $34.3 billion and missed expectations near $35.2 billion. Equipment revenue was weak because customers kept their phones longer. This is not necessarily damaging to service profitability as fewer upgrades can reduce device subsidies, but it limits consolidated revenue growth.

Management expects mobility and broadband service growth to accelerate toward 4% by the fourth quarter. Achieving that target without excessive discounts would support the bullish thesis. The risks are intensifying competition, price-sensitive customers and Verizon’s substantial debt burden. Its fibre investments, including a newly announced $1 billion agreement with $Alphabet(GOOG)$, also require disciplined execution.

VZ Daily Chart

Verizon closed at $46.38, near its $46.43 session high, after opening at $44.31. Closing near the high on heavy volume is constructive.

$Verizon(VZ)$ is testing a long-running descending trendline near $46.50–$47.00 after a strong rebound from the July low around $42, placing the stock at a potentially important breakout point. A decisive close above $47, ideally followed by a successful retest that holds the trendline as support, would strengthen the bullish case and could open a gradual move toward $48.50–$49.00, followed by the prior highs around $50.50–$51.50.

Because Verizon typically moves more slowly and may consolidate even after a breakout, a 60–90 DTE $45/$42 bull put spread may offer a better risk-reward profile than buying naked calls, allowing the trade to benefit from time decay as long as price remains above the reclaimed support area. A more directional alternative would be a $47/$50 call debit spread entered only after breakout confirmation. The setup would weaken if VZ is rejected at the trendline and closes back below approximately $44.50, while a break beneath $42 would invalidate the near-term bullish thesis.

The evidence leans moderately bullish because subscriber growth, cash flow and guidance improved together. The view would be invalidated by renewed phone-customer losses, rising churn or failure to deliver the expected fourth-quarter service-revenue acceleration. This is personal opinion for education and is not financial advice.

@Tiger_SG @Tiger_comments @TigerStars @TigerClub @CaptainTiger @Daily_Discussion

Disclaimer: This article is for informational and educational purposes only and does not constitute financial, investment, or trading advice. The views expressed are personal opinions based on publicly available information and are subject to change without notice. Investors should conduct their own research and consider their financial situation, risk tolerance, and investment objectives before making any investment decisions. I do not guarantee the accuracy or completeness of the information presented.