Verizon Stock Slips Despite Verizon iPhone Announcement At Today’s Press Conference

Jan 11, 2011

Today was the day that many people were waiting for. Today was the official Verizon press conference in which the Verizon iPhone announcement was made.

For over 2 years now, fans of the iPhone were awaiting a partnership between Apple (AAPL) & Verizon (VZ), that would bring the iPhone to the Verizon Wireless Network. Today, came the official announcement, of the February 10th release date. On February 3, 2011, Verizon Wireless customers will have the ability to pre-order the iPhone 4.

After all the speculation and rumors have been swirling, one would have thought that Verizon stock would see large gains upon the huge news. However, that clearly wasn’t the case today. On a day when the NASDAQ was about even (as of 2:00 PM ET), Verizon (VZ) saw it’s stock price drop over 2%.

As of 2:00 PM ET, shares of Verizon Stock were down $0.75 (2.06%) per share on a trading volume of 32.90 million shares.

What could be the reasoning for the rather sharp decline? Day traders have a saying “Buy the rumor, sell the news”. Apparently that is what thousands of investors are doing here.

In other stock news, shares of Apple stock (AAPL) were down 0.76%, while shares of AT&T (ATT) were down 0.77%. AT&T is the company that is expected to suffer the most from the Verizon iPhone, according to some analyst.

What is your opinion on the Verizon stock slip today?



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