NEW YORK - At the UBS Global Media and Communications Conference today, Charter Communications (NASDAQ:CHTR)' Chief Financial Officer Jessica Fischer indicated that the company might experience a decline in internet subscribers for the current quarter. This announcement triggered a sharp sell-off in Charter's stock, which fell by 8.9% to $363.3. Despite this drop, Charter's shares are still up around 7% for the year.
The cable industry is currently facing challenges in adding broadband customers, with economic factors such as elevated interest rates playing a significant role. These rates are affecting residential mobility, which traditionally presents a prime opportunity for cable companies to secure new internet subscribers.
Adding to the sector's difficulties are competitive pressures from companies like Verizon (NYSE:VZ) and T-Mobile, who have entered the market with wireless home internet offerings. These new entrants are providing alternative solutions to consumers, further complicating the landscape for traditional cable providers.
Comcast (NASDAQ:CMCSA), another major player in the industry, saw its shares decline by 3.6% following Fischer's remarks.
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