We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Charter Communications Strong on Mergers, Competition Rife
Read MoreHide Full Article
On Dec 6, 2016, we issued an updated research report on cable multi-service operator (MSO) Charter Communications Inc. (CHTR - Free Report) . The company announced plans to foray into the wireless service space next year, following the footsteps of rival Comcast Corporation (CMCSA - Free Report) .
The Wireless Plan
Charter Communications plans to utilize the Mobile Virtual Network Operator (MVNO) agreement that Time Warner Cable signed with Verizon Communications Inc. (VZ - Free Report) in 2012. Notably, Charter Communications acquired Time Warner Cable this year to become the second largest cable MSO in the U.S. after Comcast. The company plans to provide its wireless network services through the MVNO deal with Verizon. This process involves the utilization of Verizon’s wireless network to provide mobile phone service in lieu of paying a lease. Additionally, Charter Communications will try installing several Wi-Fi hotspots across cities to expand its network.
Ethernet Boom
Interestingly, the rapidly developing business services division has become a major boon for cable MSOs in the U.S. and Charter Communications has been aggressively targeting this space. Recently, the company became the third largest player in the U.S. Ethernet market after its merger with Time Warner Cable and Brighthouse Networks. We believe that cost synergies and gaining of fiber assets through the merger will give Charter Communications a formidable position in the Ethernet space.
Cautionary Note
Online video streaming service providers like Netflix Inc. (NFLX - Free Report) and Hulu.com pose severe threat to cable TV operators. Online video services provide an extremely cheap source of TV content. This business model is gaining momentum, especially amid volatile economic conditions and Charter Communications is no exception. Moreover, the impending launch of AT&T Inc.’s over the top (OTT) service – DIRECTV Now – will exert more pressure on Charter Communications.
Price Performance
Year to date, the Zacks categorized Cable Television industry has registered growth of 14.44%. However, the stock price of Charter Communications has outperformed the industry. Notably, the company has registered growth of 36.45% in the same time period.
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Charter Communications Strong on Mergers, Competition Rife
On Dec 6, 2016, we issued an updated research report on cable multi-service operator (MSO) Charter Communications Inc. (CHTR - Free Report) . The company announced plans to foray into the wireless service space next year, following the footsteps of rival Comcast Corporation (CMCSA - Free Report) .
The Wireless Plan
Charter Communications plans to utilize the Mobile Virtual Network Operator (MVNO) agreement that Time Warner Cable signed with Verizon Communications Inc. (VZ - Free Report) in 2012. Notably, Charter Communications acquired Time Warner Cable this year to become the second largest cable MSO in the U.S. after Comcast. The company plans to provide its wireless network services through the MVNO deal with Verizon. This process involves the utilization of Verizon’s wireless network to provide mobile phone service in lieu of paying a lease. Additionally, Charter Communications will try installing several Wi-Fi hotspots across cities to expand its network.
Ethernet Boom
Interestingly, the rapidly developing business services division has become a major boon for cable MSOs in the U.S. and Charter Communications has been aggressively targeting this space. Recently, the company became the third largest player in the U.S. Ethernet market after its merger with Time Warner Cable and Brighthouse Networks. We believe that cost synergies and gaining of fiber assets through the merger will give Charter Communications a formidable position in the Ethernet space.
Cautionary Note
Online video streaming service providers like Netflix Inc. (NFLX - Free Report) and Hulu.com pose severe threat to cable TV operators. Online video services provide an extremely cheap source of TV content. This business model is gaining momentum, especially amid volatile economic conditions and Charter Communications is no exception. Moreover, the impending launch of AT&T Inc.’s over the top (OTT) service – DIRECTV Now – will exert more pressure on Charter Communications.
Price Performance
Year to date, the Zacks categorized Cable Television industry has registered growth of 14.44%. However, the stock price of Charter Communications has outperformed the industry. Notably, the company has registered growth of 36.45% in the same time period.
Charter Communications currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>