Verizon Shares Fall After Wireless Demand Boosts Expenses
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Verizon Communications Inc., the second-largest U.S. phone company, fell as the surge in demand for high-speed wireless Internet cut into profit margins and boosted the need for network investments.
Verizon dropped 1.5 percent to $49.97 at the close in New York. The company increased its forecast for capital spending today to as much as $16.6 billion this year from $16.2 billion. Its wireless business had a profit margin of 49.8 percent in the second quarter, compared with the average estimate of 50.8 percent, according to a Bloomberg survey of 11 analysts.