Vivo Posts Solid Earnings in 2025, but Mobile Revenue Worries Investors—Shares Drop 3%

• Why Did Vivo’s Shares Drop Despite Solid Earnings?
• How Does Vivo’s Mobile Segment Compare to Competitors?
• What’s Driving the Broader Telecom Sector Trends?
• Is Vivo’s Diversification Strategy Working?
• How Are Analysts Reacting to the Earnings Report?
• What’s Next for Vivo Investors?
• Historical Context: Vivo’s Rollercoaster Decade
• FAQ: Your Vivo Investment Questions Answered

Why Did Vivo’s Shares Drop Despite Solid Earnings?

On November 1, 2025, Vivo released its Q3 earnings, showcasing a 7% year-over-year revenue increase—yet its stock fell 3% by midday. The culprit? Mobile revenue declined for the second consecutive quarter, down 4.5% compared to Q2. Investors, already jittery about slowing 5G adoption in Latin America, punished the stock despite gains in broadband and enterprise services. As one BTCC analyst quipped, “The market’s acting like a toddler who got the wrong color balloon.”

How Does Vivo’s Mobile Segment Compare to Competitors?

Data from TradingView reveals Vivo’s mobile revenue slump contrasts with rivals like Claro (up 2.1%) and TIM Brasil (flat). The divergence stems from Vivo’s heavier reliance on prepaid plans, which saw a 6% subscriber drop as users migrated to postpaid competitors. “Prepaid is becoming the vinyl record of telecom—nostalgic but not the future,” noted a São Paulo-based fund manager. Meanwhile, Vivo’s ARPU (average revenue per user) dipped to $8.20, its lowest since 2023.

What’s Driving the Broader Telecom Sector Trends?

Globally, telecoms face a paradox: while data consumption skyrockets (up 27% in 2025 per Statista), revenue growth lags due to price wars. In Brazil, regulatory changes have compounded the issue. Anatel’s 2024 spectrum auction forced carriers to overpay for licenses, squeezing margins. “It’s like buying a Ferrari but only being allowed to drive it in first gear,” grumbled an industry insider.

Is Vivo’s Diversification Strategy Working?

Vivo’s silver lining lies in its fiber-optic and cloud services, now 38% of total revenue. The company added 210K new fiber subscribers last quarter—a record. However, BTCC’s research team cautions that infrastructure costs could dampen profits: “Digging trenches for fiber isn’t cheap, and investors hate capex surprises.”

How Are Analysts Reacting to the Earnings Report?

Wall Street’s take is mixed. Goldman Sachs maintains a “Buy” rating, citing Vivo’s “unrivaled Brazilian footprint,” while Morgan Stanley cut its target price by 5%, calling mobile trends “worse than feared.” Retail traders on Reddit’s r/investing, meanwhile, memed the drop with GIFs of sinking ships—a sign of how sentiment’s shifted since Vivo’s 2024 bull run.

What’s Next for Vivo Investors?

All eyes are on December’s investor day, where CEO Christian Gebara is expected to unveil a mobile turnaround plan. Rumors suggest partnerships with fintechs to boost app-based revenues. “If they can monetize those 50 million active app users better, this dip’s a buying opportunity,” argues a BTCC markets strategist. Until then, volatility seems likely.

Historical Context: Vivo’s Rollercoaster Decade

Since its 2020 merger with Oi, Vivo has swung between dominance and disruption. The stock tripled from 2021–2023 as 5G HYPE peaked but has since given back 22% of those gains. Long-term holders recall CEO Amos Genish’s 2022 warning: “Telecom isn’t for the faint-hearted.”

FAQ: Your Vivo Investment Questions Answered

Why did Vivo’s mobile revenue decline?

Prepaid subscriber losses and aggressive competitor pricing eroded mobile earnings, despite higher data usage.

Is the 3% stock drop an overreaction?

Some analysts say yes—core profits grew 9%—but markets hate uncertainty, especially in telecom.

Should I buy the dip?

This article does not constitute investment advice. Consult your financial advisor regarding portfolio decisions.