Verizon Stock Edges Down on $1B Contract with Department of Defense

Trade VZ Stock Your Capital Is At Risk
Ollie Martin
Updated: 16 Mar 2022

Key points:

  • Verizon awared nearly $1B in prestigious DoD contracts
  • The deal had little effect on VZ stock this morning, dipping 1.4%
  • Verizon will uphold the partnership moving forward to promote a long-term innovative IT vision

Verizon, the US specialist in wireless networks, today announced it has been awarded nearly $1B in government contracts by the Department of Defense (DOD). The company will provide network modernization services and further technical support to the Pentagon when needed.

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The deal had little effect on VZ this morning, with the stock edging down slightly by just over 1%. It is surprising that a deal of such magnitude failed to please bulls this morning, even as tech stocks are seeing some relinquishment from recent heavy selling.

The total $966.5M award has been split into three contracts. The first, valued at $515.3M, will see Verizon partner with the DOD to transition the entire Pentagon military and civilian population from older technology to advanced internet protocol-based services. In more detail, the contract involves the conversion of more than 50,000 voice lines to an integrated IP environment including optimized voice and video services. 

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The second award of $432.9M will the DOD-NCR involves the delivery of core voice, transport, and internet services to over 370 locations within the DOD-NCR. Finally, Verizon has been awarded an $18.3M task order to provide communications technology infrastructure services at Fort Belvoir – an army garrison that provides logistical, intelligence, and administrative support to a variety of commands.

The company will also remain active in working with DOD in the future to ensure the development of a long-term IT vision that continues to promote innovation. VZ stock currently trades at a daily loss of 1.16%, down 6% year-on-year. 

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