Verizon Stock Hits New High on Google Deal, but Can It Keep Rising?

Verizon Communications Inc. (VZ) reached a new milestone in August as it closed at $50.15, marking a 23% increase for the year and nearing its 52-week high of $51.68. The stock's recovery has been impressive, especially considering it spent most of the last three years testing the bottom of its range.

The question on everyone's mind is: with the turnaround now visible in the numbers and the sell-side average target at roughly $52, only a few percent above the current price, is there anything left to buy? One key factor that contributed to Verizon's success is its partnership with Google Cloud, which announced an expanded AI partnership spanning customer service, network operations, marketing, and security.

This deal is distinct from the dark-fiber agreement worth over $1 billion that CEO Dan Schulman disclosed in July, where Verizon rents physical fiber to connect Google's data centers. The new partnership is a cost-saver for Verizon and also creates a new revenue stream starting in 2027. Management is targeting at least $9 billion of combined operating and capital savings this year.