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Key Stats for CHTR Stock
- Price Change for CHTR stock: -18.5%
- Current Share Price: $310
- 52-Week High: $437
- CHTR Stock Price Target: $440
What Happened?
Charter Communications (CHTR) stock plummeted by over 18% on Friday after the cable and broadband giant reported mixed second-quarter results, highlighting ongoing challenges in its core internet business.
While the company met revenue expectations at $13.8 billion (up 0.6% year-over-year), earnings per share of $9.18 fell short of Wall Street’s estimate of $9.77.
The quarter’s most concerning metric was the loss of 117,000 internet subscribers, Charter’s bread-and-butter business that generates the majority of its profits.
Although this represented an improvement from the 149,000 internet customer losses a year ago (when adjusted for the impacts of government subsidy programs), the continued subscriber decline underscores the competitive pressure Charter faces from wireless carriers offering 5G home internet services.
Video subscriber losses also continued, with 80,000 customers opting to cut the cord during the quarter.
However, this was an improvement from the 408,000 video losses in the same quarter last year, driven by Charter’s new bundling strategy and improved streaming app offerings.
Charter’s mobile business remained a bright spot, adding 500,000 lines and growing revenue 25% year-over-year.
See analysts’ growth forecasts and price targets for Charter Communications (It’s free!) >>>
What the Market Is Telling Us About CHTR Stock
The market’s harsh reaction to CHTR stock reflects growing concerns about Charter’s ability to defend its broadband market share against increasingly aggressive wireless competition.
Despite management’s confidence in returning to internet subscriber growth “over time,” investors appear skeptical about the timeline and the company’s ability to execute its turnaround strategy effectively.
Charter’s recent $34.5 billion acquisition of Cox Communications was designed to strengthen its competitive position, but the deal won’t close for months, and regulatory approval remains uncertain.
While CHTR stock generated strong free cash flow and maintained healthy margins, the subscriber losses in its most profitable segment suggest the competitive landscape may be more challenging than previously anticipated.
Trading at these levels, Charter appears to be priced for continued subscriber pressure in the near term.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
