Verizon shares gain the most in ten weeks on Tuesday, company to explore 5G opportunities with Walt Disney Pictures

January 9, 2019 8:39 am

At the CES event hosted in Las Vegas on Tuesday, Verizon Communications Inc (VZ) and Walt Disney Pictures announced a partnership aimed to explore the opportunities of 5G connectivity for media and entertainment at Walt Disney’s StudioLab.

The tie-up is to allow the studio to utilize next-generation wireless broadband that delivers peak data transmission rates of 10 Gbps.

Verizon shares closed higher for a fourth consecutive trading session in New York on Tuesday. It has also been the sharpest daily surge since October 30th. The stock went up 2.93% ($1.66) to $58.38, after touching an intraday high at $58.68, or a price level not seen since December 11th ($59.40).

Shares of Verizon Communications Inc have risen 3.84% so far in 2019 compared with a 2.70% gain for the benchmark index, S&P 500 (SPX).

In 2018, Verizon’s stock went up 6.22%, thus, it again outperformed the S&P 500, which registered a 6.24% loss.

“We see 5G changing everything about how media is produced and consumed,” Jamie Voris, Walt Disney Studios chief technology officer, said in a statement, cited by Variety.

“We shoot our movies in some very remote locations,” he said.

5G technology allows for the download of a digital movie in only 10 seconds at speeds of 300 mbps. If one is using the current standard for mobile internet, or 4G, it would take them 3-4 minutes to download the same movie at speeds of 20 mbps.

In October, Verizon introduced its 5G wireless service in four areas – Houston, Indianapolis, Los Angeles and Sacramento.

According to CNN Money, the 24 analysts, offering 12-month forecasts regarding Verizon Communications Inc’s stock price, have a median target of $59.00, with a high estimate of $65.00 and a low estimate of $50.00. The median estimate represents a 2.12% upside compared to the closing price of $57.78 on January 8th.

The same media also reported that 18 out of 30 surveyed investment analysts had rated Verizon Communications Inc’s stock as “Hold”, while 12 – as “Buy”.

Weekly Pivot Levels

By using the traditional method of calculation, the weekly levels of importance for Verizon Communications Inc (VZ) are presented as follows:

Central Pivot Point – $56.14
R1 – $57.21
R2 – $58.06
R3 – $59.13
R4 – $60.20

S1 – $55.29
S2 – $54.22
S3 – $53.37
S4 – $52.52

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