Telecommunications major Verizon Communications Inc. (NYSE: VZ) recently revealed that it has entered into a partnership with entertainment company Live Nation Entertainment, Inc. (NYSE: LYV) to leverage Verizon’s 5G capabilities in offering its users an immersive artist experience.
Following the news, shares of the company declined marginally to close at $51.10 in Monday’s extended trading session.
Details of the Partnership
With virtual experiences gaining prominence by the day, Verizon’s move to team up with Live Nation is expected to give its 100 million customers access to Live Nation’s leading artists and their concerts at their convenience. Verizon aims to achieve this by continuing the deployment of 5G Ultra Wideband in Live Nation clubs, theaters and amphitheaters across the country.
Further, Verizon Up members, the free-to-join customer loyalty program of the company, will get exclusive early access to Live Nation tours before the general public. The company has plans to continue the same for Live Nation concerts throughout 2022.
Management Commentary
The CEO of Verizon, Hans Vestberg, said, “The partnership we’re announcing today is a continuation and deepening of Verizon’s long-standing relationship with Live Nation. Predicated on technology and our massive consumer base, this partnership will elevate the ecosystem of music – how fans engage, how artists produce and perform, and how venues deliver enhanced in-person experiences and scale them digitally.”
Stock Rating
Recently, Goldman Sachs analyst Brett Feldman reiterated a Buy rating on the stock with a price target of $61, which implies upside potential of 19.4% from current levels.
According to the analyst, the company’s revenue outlook, 5G subscriber targets and potential buybacks remain tailwinds.
The Wall Street community is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on four Buys and five Holds. The average Verizon price target of $60.44 implies that the stock has upside potential of 18.3% from current levels. Shares have declined 9.7% over the past year.
Website Traffic
TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into Verizon’s performance this quarter.
According to the tool, the Verizon website recorded a 15.68% monthly decline in global visits in February, compared to the same period last year. Further, the website traffic has declined 23.32% year-to-date, compared to the previous year.
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