Verizon Slides 10% on SpaceX Spectrum Deal and Scotiabank Target Cut

Verizon Communications closed Friday at $41.65, down 10.14%, following a spectrum deal by Space Exploration Technologies Corporation and a price target reduction from Scotiabank. The wireless and broadband carrier saw trading volume reach 88.6 million shares, approximately 286% above its three-month average of 22.9 million shares.

SpaceX, better known as Space Exploration Technologies Corporation, struck a nationwide low-band spectrum deal with Grain Management. CEO Elon Musk described the move as a major step toward offering direct-to-device phone coverage across the U.S. Wall Street reassessed long-term competition for traditional mobile carriers in response, with the news pressuring the broader integrated telecommunications services sector.

Peers in the group also declined sharply. AT&T closed at $22.17, down 10.86%, and T-Mobile US closed at $148.58, down 13.27%. In contrast, the S&P 500 closed at 7,811, up 0.59%, while the Nasdaq Composite closed at 27,366, up 0.64%. SpaceX shares rose 1.25% during the session.

Scotiabank lowered its price target on Verizon Communications to $50 from $51.50 while maintaining a sector outperform rating. This adjustment added to the selling pressure during the session, which appears to be Verizon's worst day since 2002.

Investors are now focused on Verizon's October 26 earnings call for guidance on capital spending and subscriber trends. While Verizon's April guidance increase and July profit forecast lift still frame the stock's current setup, investors have begun to weigh long-term competition against execution. In the near term, the SpaceX deal is not expected to hurt Verizon's revenue or subscriber outlook, but the long-term competitive landscape remains under scrutiny.