Verizon's plan: win consumers, lose investors

Verizon's test lab

Verizon's test lab

Verizon has brought back its unlimited data plan. This is great if you are a Verizon customer. But it is terrible news for investors.

Verizon (VZ) Stock fell nearly 1.5% early in the day. It has now dropped 10%, making it the worst result for 2017.

Verizon's move is a clear sign that the company must do everything it can to compete with wireless competitors AT&T (T). sprint (S) and T-Mobile (TMU),

"Over the past few months, both T-Mobile and Sprint have had some success in gaining additional shares in Verizon due to their unlimited offerings," Morgan Stanley analysts wrote in a report Monday morning.

This could explain why the shares of T-Mobile and Sprint, now controlled by the Japanese technology group SoftBank, both rose this year as Verizon fell. T-Mobile and Sprint have always been possible merger partners.

However, the new price war in telecommunications is not the only problem for Verizon.

AT&T recently acquired satellite broadcast provider DirecTV, making Ma Bell more competitive with Verizon in the struggle to control people's living rooms. Verizon offers its own FiOS broadband TV service.

Related: Verizon brings back unlimited data plans

In addition, AT&T is focusing on content and intends to buy the parent company from CNN Time Warner (TWX), Verizon is already the owner of AOL and intends to acquire Yahoo's core resources to strengthen its digital content offerings.

But the Yahoo (YHOO) The deal could fall apart after massive privacy breaches at Yahoo became known in recent years.

Yahoo recently hopes that the Verizon deal will be closed in the second quarter of this year. It was originally scheduled to be completed in the first quarter.

However, in its latest earnings release, Verizon merely said that it "continues to work with Yahoo to assess the impact of data breaches" and not that the deal was expected to close soon.

Verizon has a lot on its plate that could make investors nervous. In addition to the Yahoo deal, the company is currently acquiring the fiber optic network from XO Communications. And it sells its data center business Equinix (EQIX),

There have also been rumors in recent weeks that Verizon might even consider buying cable providers Charter Communications (CHTR),

That may be more than Verizon can currently realistically handle. With today's wireless world competitiveness, Verizon may not be off the table anymore.

Anything that could help Verizon to AT&T, Sprint and T-Mobile could be possible.

Related: Charter stocks appeared on the report of the possible Verizon acquisition

Nevertheless, it should be noted that AT&T shares fell by around 5% again this year. And Verizon and A&T have something in common that Sprint and T-Mobile don't offer – Verizon and AT&T pay huge dividends.

Companies with high dividend yields have not fared so well since Donald Trump's election. Investors are banking on a comprehensive stimulus package from him and the Republican Congress, which can be fueled in part by debt.

This increased bond yields – and made stocks of large dividend payers like Verizon less attractive.

The Federal Reserve is expected to raise rates several times this year as well. This could drive bond yields even higher.

So Verizon faces many major challenges that could hurt its stock this year.

That's why Verizon, nicknamed Big Red because of the purple tint of its logo, will see its inventory in the red for the foreseeable future.

CNNMoney (New York) First published February 13, 2017: 11:27 ET