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Investing.com -- Charter Communications (NASDAQ:CHTR) shares tumbled 3.7% in Thursday’s trading session, moving in tandem with Comcast’s (NASDAQ:CMCSA) stock, which also fell sharply after the company reported significant broadband customer losses. The decline in Charter’s stock reflects investor concerns over the potential impact of the broader industry trend indicated by Comcast’s results.
Comcast’s first-quarter performance revealed a larger-than-expected decrease in domestic broadband customers, with a net change of -199K compared to the estimated -144K. This development has raised alarms about the health of the broadband sector, causing a ripple effect among peers, including Charter Communications. The company’s stock price reacted negatively, as investors worried that Charter might face similar challenges.
Comcast’s report showed that its Total (EPA:TTEF) Customer Relationships for Connectivity & Platforms decreased by 228,000 to 51.4 million, driven primarily by a reduction in Residential Connectivity & Platforms customer relationships. Alongside the broadband customer losses, Comcast also saw a drop in domestic video customers, which totaled 427,000 for the quarter. However, there was a silver lining with the addition of 323,000 domestic wireless lines.
The market’s reaction to Comcast’s report underscores the sensitivity of telecommunications stocks to subscriber metrics, which are seen as key indicators of future revenue and growth potential. As Charter Communications operates within the same industry, its stock movement today suggests that investors are bracing for potential knock-on effects from Comcast’s disclosed challenges.
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