T Rowe Price Comments on Verizon Communications

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Feb 23, 2021

In communication services, we sold shares of Verizon Communications (VZ, Financial). In our view, the stock trades at an elevated relative valuation given the rise of competition in the 5G space and the possibility that Verizon Communications loses market share over time. We are also cognizant of the significant amount of capital investment needed to maintain its leading 5G network, thereby pressuring returns.

From the T Rowe Price Equity Income Fund (Trades, Portfolio)'s 2020 annual shareholder letter.