Verizon Communications Inc. (NYSE:VZ) Buys Yahoo And Opens Co-Working Space In Cambridge

Verizon Communications Inc. (NYSE:VZ) Buys Yahoo And Opens Co-Working Space In Cambridge

Verizon Communications Inc. (NYSE:VZ) Buys Yahoo And Opens Co-Working Space In Cambridge

  • Verizon closed its $4.48 billion purchase of Yahoo’s core business Tuesday, finalizing a deal mired by two massive hacks affecting more than 1 billion Yahoo accounts and marking the latest play by telecoms to challenge Silicon Valley’s dominance in online advertising.
  • Yahoo, which once had a market value of $125 billion, will be combined with AOL, another faded web pioneer it bought in 2015, into a new division of Verizon called Oath.
  • As part of the finalized deal, Yahoo chief executive Marissa Mayer will resign with a “golden parachute” worth just over $23 million, in cash, equity and benefits, according to an SEC filing. She served at the company’s helm since 2012.
  • And more than 2,000 employees will get laid off as Yahoo and AOL reorganize under Verizon’s management, according to a person familiar with the matter.
  • Verizon Communications Inc. is getting into the startups game by turning some of its older buildings — including ones in Cambridge and Washington, D.C. — into co-working spaces aimed at entrepreneurs.
  • Called “Alley, powered by Verizon,” the new membership-only, 10,000-square-foot space in Cambridge is scheduled to open at the end of June at 10 Ware St. The facility served as a central office for Verizon (NYSE: VZ) that previously housed network and telecommunications equipment.

Verizon Communications Inc. is a holding company. The Company, through its subsidiaries, provides communications, information and entertainment products and services to consumers, businesses and governmental agencies. Its segments include Wireless and Wireline. The Wireless segment offers communications products and services, including wireless voice and data services and equipment sales, to consumer, business and government customers across the United States. The Wireline segment offers voice, data and video communications products and services, such as broadband video and data, corporate networking solutions, data center and cloud services, security and managed network services, and local and long distance voice services. The Company provides these products and services to consumers in the United States, as well as to carriers, businesses and government customers both in the United States and around the world.

Overall, the bias in prices is: Downwards.

Short term: Prices are stalling.

Intermediate term: Prices are ranging.

The projected upper bound is: 47.69.

The projected lower bound is: 45.14.

The projected closing price is: 46.41.

VERIZON COMMS closed down -0.730 at 46.460. Volume was 0% below average (neutral) and Bollinger Bands were 10% narrower than normal.

Open        High        Low           Close        Volume
47.300     47.310     46.400     46.460     15,194,584

Technical Outlook
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish

Moving Averages: 10-period         50-period       200-period
Close:                       46.55                46.83              49.54
Volatility:                15                      17                     19
Volume:                   14,192,087     16,037,644     14,958,147

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

VERIZON COMMS is currently 6.2% below its 200-period moving average and is in an upward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of VZ at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on VZ and have had this outlook for the last 8 periods.

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 62.2047. This is not an overbought or oversold reading. The last signal was a sell 7 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 51.01. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 17 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 69. This is not a topping or bottoming area. The last signal was a sell 0 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 14 period(s) ago.

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John Heffernan

John Heffernan is a Junior Analyst at HEFFX. John is studying Economics and is a contributor on equities at Live Trading News.

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