Stocks were broadly lower this morning ahead of a busy earnings week.
There were no major economic data releases today.
Stocks on the Move
Verizon (VZ) has finally captured its target, agreeing to acquire Yahoo’s (YHOO) core business for $4.8 billion. While the deal is too small to have a material impact on our fair value estimate or moat rating for Verizon overall, we aren’t enamored with the purchase. Despite its large audience surrounding sports, finance, and email, Yahoo has famously struggled to turn around its core business over the past several years. We are skeptical that Verizon will add much to reinvigorate innovation within Yahoo’s search and display advertising businesses via the combination with its AOL segment. Verizon shares were off slightly on the news while Yahoo fell 2.2%.
Shares of Sprint (S) soared 23% this morning after reporting operating metrics and revenue that were ahead of expectations. The firm added a net 173,000 postpaid customers a turnaround from the 12,000 it lost in the year-ago quarter. Overall, the firm lost 8 cents per share, in line with analyst views.
Jeremy Glaser does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.