Corning Stock Surges on Major Fiber-Optic Supply Deal with Verizon
Corning Incorporated (NYSE: GLW) has seen its stock rise for four consecutive days, gaining over 2.4% in early trading and adding to a week-long surge of nearly 18%. This upward trend is largely attributed to an announcement by Verizon (NYSE: VZ), which revealed a multi-year supply agreement with Corning to purchase more than 80 million miles of fiber-optic cable for its network. The contract, set to run from 2027 through 2032, could be worth over $420 billion based on an estimated price per foot. While the exact financial terms remain undisclosed, analysts suggest that even when divided across five or six years, this deal represents a significant revenue boost for Corning, which currently generates about $20 billion in annual sales. Despite concerns around valuation — with Corning trading at 76.5 times trailing earnings — some investors see the potential of this contract as transformative and possibly justify buying into the stock.
Topics: Corning stock fiber-optic cable supply agreement Verizon contract