Verizon (VZ) is on an upward trajectory in the stock market, so many of its investors may be feeling very confident at the moment. Verizon is not without threats and competition though, and these must be kept in mind. In no way is Verizon a perfectly safe bet, but Verizon seems to be poised for growth. I expect it to continue to roll out new plans and products with a higher reliance on data packages in the near future. The company should continue to grow, and this should have good effects on the stock.

Verizon started the drift towards data packages last year. Changes in these plans have eventually led to its recent announcement of shared data plans. Under this plan, a customer would pay $90 per month to get unlimited voice minutes and text messaging, as well as 1 GB of data for one smartphone. This plan targets people who are not already big users of data plans. It may also drive demand from families, possibly where only one person has the need or desire for a smartphone. The 1 GB data limit is fairly low, but for people who only use the data plans for personal entertainment, this might be enough. It should be noted that this plan is responding to the demand for data packages, as there is little increase in demand for voice minutes or text messaging anymore.

Due to the increase in demand for data packages, Verizon is improving the capacity of its networks.

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