Dow Stock #11 – Verizon (VZ)
Verizon (VZ) is betting the farm on a high-stakes bid to supplant the Apple iphone with its Droid device. In the long run this may be a good move, but in the short run the ad blitz and high cost of this rollout are really going to eat away at Verizon’s bottom line.
While spending on tech devices has been strong, the bottom line is that the initial price point for the Droid may be a bit high and it will take some time for consumers to catch on to this smartphone, considering how loyal Apple users are. Things may change in a few weeks if I hear some favorable news, but for now VZ is a sell.
See Louis Navellier’s FREE Portfolio Grader stock
report on Verizon.