According to a recent report by U.S. telecom behemoth Verizon Communications Inc. (VZ - Free Report) Enterprise Solutions' third annual Verizon Retail Index, the average daily eCommerce traffic volumes to U.S.-based retailers on Black Friday were up 9% year over year while peak ecommerce volumes were 39% higher than 2015 levels, indicating increased consumer engagement through digital platforms. Moreover, Thanksgiving (Nov 24) drove eCommerce traffic by 10% year over year while peak eCommerce volumes were 22% higher than 2015 levels.
Verizon is known for its diversified business model, which covers varied fields like communications, technology, wireless industry, Internet of Things (IoT) along with the media video and digital platform. Toward this end, the telco recently reported heavy eCommerce (Electronic commerce) and mCommerce (Mobilecommerce) traffic on Black Friday (Nov 25), courtesy of the promotional offers.
The weekend before Thanksgiving also witnessed a moderate 15% hike in daily eCommerce traffic volumes to U.S.-based retailers compared to 2015 levels. Peak eCommerce volumes showed a 35% year-over-year rise, implying encouraging response by consumers to the deals offered by retailers. However, mCommerce traffic was down 2% year over year while peak mCommerce volumes were up 2% from a year ago.
The Verizon Retail Index specializes in consumer ecommerce traffic during the holiday shopping season. The index also tracks eCommerce traffic across Verizon's broadband networks. The index also monitors network traffic throughout the holiday shopping season, including events such as Black Friday and Cyber Monday.
The next edition of the Verizon Retail Index will reveal digital shopping activity figures for the Nov 26–27 weekend and is scheduled to be released today. The escalation in eCommerce and mCommerce traffic on Black Friday implies that the telco’s efforts to expand and strengthen its digital-video network have paid off. Verizon has also been engaged in a number of digital ventures.
This September, Verizon entered into a partnership with Qualcomm Technologies, Inc., a subsidiary of Qualcomm Inc. (QCOM - Free Report) , to develop its IoT platform, ThingSpace. Meanwhile, Verizon’s rival AT&T Inc. (T - Free Report) partnered with Cisco Systems, Inc. (CSCO - Free Report) to launch an all-in-one IoT Starter Kit. Notably, these telecom companies are looking for alternative sources of revenue to offset the decline in their legacy businesses like fixed-line services.
Verizon currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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