Verizon Names a New CEO and the Stock Drops. AT&T and T-Mobile Are Falling Too.

President Donald Trump’s deportation drive is a challenge for Verizon and other wireless carriers because immigrants account for much of their gains in subscribers. (Courtesy Verizon)

Key Points

• Verizon Communications appointed Daniel Schulman, former PayPal CEO, as its new CEO, replacing Hans Vestberg effective immediately.
• Verizon’s stock declined 1% to $43.24 premarket, while its shares had risen 9.2% this year as of Friday’s close.
• The company faces intense competition from AT&T and T-Mobile US for wireless and home internet customers.

Verizon Communications said it was appointing lead independent director Daniel Schulman as its new CEO, changing its leadership as it tries to stop customers from switching to its rivals.

Verizon said that Schulman, the former CEO of PayPal , would succeed Hans Vestberg, effective immediately. Vestberg will serve as a special advisor until Oct. 4, 2026, to help support a smooth transition.

Verizon stock dropped 4.8% to $42.28 in afternoon trading and was on pace for its worst day since April and on track to be the worst performer in the Dow, according to Dow Jones Market Data. The S&P 500 was 0.4% higher.

This is another major managerial transition announcement in the telecom space in recent weeks. T-Mobile announced on Sept. 22 that Chief Operating Officer Srini Gopalan would become the company’s next CEO, effective Nov. 1.

Shares of T-Mobile were down 2.9% on Monday, while AT&T stock declined 4.1%.

“The timing of the CEO change was surprising to us and the street, though not unexpected,” Raymond James analyst Frank Louthan wrote in a note on Monday. He rates the stock as Outperform with a $47 price target.

Verizon shares are now up 3.8% in 2025, compared with a 15% rally for the S&P 500.

Verizon has struggled to stave off tough competition from its rivals this year. The likes of both AT&T and T-Mobile US have been gunning to snatch away both home internet and wireless customers. The Trump administration’s deportation drive is also expected to be a headwind for the industry, given that immigrants tend to make up a significant chunk of their subscriber additions each year.

Verizon did also reiterate its 2025 financial guidance on Monday. Investors will be paying close attention to any more commentary Verizon has to provide about the leadership transition when the company reports third-quarter earnings on Oct. 29.

Write to George Glover at george.glover@dowjones.com and Angela Palumbo at angela.palumbo@dowjones.com