Author Topic: Wall Street Is Getting Nervous about Cord Cutting  (Read 710 times)

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Offline kevindavis007

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Wall Street Is Getting Nervous about Cord Cutting
« on: June 22, 2017, 12:08:15 am »

Cable companies, such as Comcast and Charter, have long been solid investments as far as Wall Street was concerned. Now that all seems to be changing.


Yesterday MoffettNathan, an independent research firm that monitors the cable and satellite sectors, called for the downgrade of cable companies from buy to “neutral.” This is no minor change because these buy ratings can have a huge effect on stock prices and, in turn, companies.


“Broadband growth will inevitably slow, and it will likely do so at precisely the same time that video growth rates also come under pressure from OTT substitution,” Moffett said in his Tuesday-morning note. “And while cable operators have the pricing power to offset these headwinds via their broadband business, we believe it is likely that investors will (appropriately) apply a somewhat lower terminal growth rate assumption to a business that is achieving its growth through pricing rather than unit growth.”


Not only is Comcast and Charter at a neutral rating, but Cable One is now a recommended sell.


“After 10 years, it is getting harder to pretend that the market is somehow missing something,” Moffett added. “The market no longer views cable operators as contrarian investments. Their infrastructure advantage is well understood.”


Once again we are seeing the pressure of cord cutting on every aspect of the cable industry. The only question now is what happens next. Who is pushed out, and how do they respond?


Source: http://cordcuttersnews.com/wall-street-getting-nervous-cord-cutting/
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Offline roamer_1

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Re: Wall Street Is Getting Nervous about Cord Cutting
« Reply #1 on: June 22, 2017, 12:31:06 am »
Charter just called today... dropped the price again...
Now just fifteen bucks a month extra to get CableTV along with my currently subscribed cable service and phone... Of course, that still doesn't get rid of the digital box rental, which is something close to 30 bucks for 3 TVs.

Told them nicely that they could offer it free and it wouldn't matter to me. What good is it if I don't watch the thing?

SO done with commercials.
SO done with crappy liberal programming themes.
SO very done with all of it.
« Last Edit: June 22, 2017, 12:31:24 am by roamer_1 »