Jim Cramer -- Verizon Is Becoming a Global Communications Company
Shares of Verizon (VZ) - Get Report are down 1.7% Tuesday after the company released a mixed earnings report. Although earnings per share estimates topped analyst estimates, revenue results missed expectations. Management did reiterate full-year guidance, though.
The company only added 86,000 new post-paid customers, TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, pointed out on CNBC's "Mad Dash" segment. That's less than the 180,000 that Sprint (S) - Get Report added during the quarter, said Cramer, who looked at that stock Monday.
However, he also acknowledged Sprint has been more competitive on pricing to win back market share from its competitors, although that strategy may be changing somewhat.
Verizon made a noteworthy comment on its $4.83 billion acquisition of Yahoo! (YHOO) when management said of the property, it's "scaling up to be a major player in mobile media."
Verizon is a domestic company with global aspirations, Cramer said. Management is trying to look beyond just cell phones to drive its business. Maybe that's insight into Apple (AAPL) - Get Report and its upcoming iPhone release, he said. While Verizon VEO Lowell McAdam seemed bullish on Apple's new device, it's also worth realizing that Apple benefits his business, Cramer reasoned.
"This is becoming a major communications company, not a major cell phones company," Cramer said.
At the time of publication, Cramer's Action Alerts PLUS had a position in AAPL.