In this article VZ CMCSA CHTR Cunaplus_m.faba | Istock | Getty Images Internet service providers like Charter, Verizon and Comcast have quietly scaled back their efforts to revive the Affordable Connectivity Program, an expired federal internet subsidy that helped low-income households pay for broadband. The $14.2 billion program provided a discount of up to $30 per month for some qualifying households and up to $75 a month for households on eligible tribal land. But it officially ended in June after Congre ...

Core Viewpoint - The National Advertising Division (NAD) has determined that while Verizon Communications Inc. has a reasonable basis for some claims regarding its Verizon Home Internet services, it must modify or discontinue others based on the findings of a challenge brought by Charter Communications, Inc. [1] Summary by Category Verizon Home Internet Services - Verizon Home Internet includes three primary services: Fios Home (fiber-to-the-home), 5G Home (mid-band and high-band 5G wireless), and LTE Home (4G LTE wireless) [2] 5G Claims - NAD found that Verizon's use of the term "5G" in its advertising accurately describes the service as home internet connected through 5G mobile technology, and the claims were not misleading [3] Fast and Reliable Claims - NAD concluded that Verizon provided a reasonable basis for claims that its services are "reliable" and that consumers will receive uninterrupted service and consistent speeds throughout the day [4] Modifications Required - Verizon failed to substantiate claims that its 5G Home and LTE services are "fast" in comparison to its broadband services, and NAD recommended modifications to clarify which service supports the "fast" claims [5][6] Streaming Claims - NAD determined that Verizon's claim regarding streaming capabilities was misleading as it did not disclose limitations on playback resolution, particularly the inability to stream in 4K [7][8] Data Limits and Caps Claims - NAD found that Verizon's claims of "no data limits" or "data caps" were unsupported due to the company's ability to limit speeds for high data-using customers, recommending discontinuation or modification of these claims [9][10] Antenna Claims - NAD concluded that Verizon's claim about the presence of 5G antennas in neighborhoods is truthful and does not mislead consumers regarding the availability of multiple antenna options [11][12] Underground Claims - Verizon modified its claim about 5G Home Internet working underground to clarify the context, which NAD found reduced consumer confusion and was not misleading [13] Plan Selection Claims - NAD found that claims encouraging consumers to choose plans that fit their needs were not misleading, as consumers understand that service availability varies [14] Availability Claims - Verizon's geo-targeting of advertisements and disclosures about service availability were deemed sufficient, with no modifications necessary [15] Compliance with Recommendations - Verizon has stated it will comply with NAD's decision and take recommendations into account for future advertising, having already discontinued or modified several claims during the proceeding [16]

Charter Communications (CHTR) has partnered with Paramount Global (PARA) to announce that Paramount+ Essential, the ad-supported version of PARA's streaming service, is now included in all Spectrum TV Select and Mi Plan Latino packages nationwide at no extra charge. Under this new multi-year distribution agreement, Spectrum video customers can start streaming a vast library of more than 40,000 episodes of shows and movies. This integration of Paramount+ Essential adds significant value to Spectrum's video p ...

Core Viewpoint - Charter Communications, Inc. will have its CEO Christopher Winfrey participate in the Goldman Sachs Communacopia + Technology Conference on September 11, 2024, indicating the company's engagement with investors and the market [1]. Company Overview - Charter Communications, Inc. is a leading broadband connectivity company and cable operator, serving over 57 million homes and businesses across 41 states under the Spectrum brand [3]. - The company offers a comprehensive range of residential and business services, including Spectrum Internet®, TV, Mobile, and Voice, through an advanced communications network [3]. - For small and medium-sized businesses, Spectrum Business® provides a suite of broadband products and services with additional features to enhance productivity, while Spectrum Enterprise® offers customized, fiber-based solutions for larger businesses and government entities [4]. - Spectrum Reach® delivers tailored advertising and production services, and the company also provides award-winning news coverage and sports programming through Spectrum Networks [4].

Core Insights - Spectrum Business has partnered with EverPass Media to offer NFL Sunday Ticket and Peacock Sports Pass to commercial venues across 41 states, marking EverPass' first official channel partnership [1][5] - The new Sports Fan TV package from Spectrum Business will provide over 40 live and local sports channels, available at an introductory price of $79.99/month or $59.99/month when bundled with another service [2][3] Company Overview - Spectrum, operated by Charter Communications, provides advanced communication services to over 57 million homes and businesses in 41 states, including internet, TV, mobile, and voice services [6][7] - EverPass Media, founded in 2023, focuses on aggregating and distributing live sports and entertainment content for commercial businesses, initially as the exclusive distributor of NFL Sunday Ticket [8]

M. Suhail Recap In our last article titled "Charter Q4'23 Earnings: Net Broadband Losses, Robust Mobile Net Adds, 8% FCF Yield," we highlighted that internet broadband net adds had been under pressure due to low market activity and heightened competition from Fixed Wireless Access ("FWA") operators and fiber overbuilders. However, one of the FWA operators suggested that net adds below its quarterly trend were still sufficient to reach its 2025 target. Moreover, fiber overbuilders revised their fiber deploym ...

Core Insights - Charter Communications (CHTR) is currently considered an attractive investment opportunity for value investors due to its favorable financial metrics and strong Zacks Rank [2][6]. Financial Metrics - CHTR has a Price-to-Sales (P/S) ratio of 1.01, which is lower than the industry average of 1.32, indicating potential undervaluation [1]. - The Price-to-Cash Flow (P/CF) ratio for CHTR stands at 4.10, significantly below the industry average of 6.45, suggesting that the stock may be undervalued based on cash flow strength [3]. - Over the past 52 weeks, CHTR's P/CF has fluctuated between a high of 5.18 and a low of 2.80, with a median of 4.12, reflecting its cash flow performance [3]. Investment Ratings - CHTR holds a Zacks Rank of 2 (Buy) and an "A" grade in the Value category, making it one of the strongest value stocks currently available [2][6]. - The combination of a high Zacks Rank and strong value metrics positions CHTR as a compelling option for value investors [2][4].

What is Implied Volatility? Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy. Clearly, options traders are pricing in a ...

Financial Performance - Charter Communications reported fiscal second-quarter 2024 revenue growth of 0.2% year-on-year to $13.69 billion, exceeding the analyst consensus estimate of $13.59 billion [1] - The company achieved an EPS of $8.49, surpassing the analyst consensus estimate of $7.95 [1] Customer Metrics - Charter lost 154,000 residential Internet customers, primarily due to the end of the FCC's Affordable Connectivity Program subsidies, compared to a gain of 70,000 customers in the previous year [2] - Residential video customers decreased by 393,000, a larger decline than the 189,000 decrease reported in the prior year [2] Future Outlook - Charter Communications expects a 2024 capital expenditure (capex) of $12.0 billion, revised down from a previous estimate of $12.2 billion to $12.4 billion [2] - The company's 2024 revenue and EPS consensus estimates are $54.52 billion and $32.53, respectively [2] Stock Performance - Following the financial results announcement, Charter Communications shares gained 16.6%, closing at $367.62 [3] Analyst Ratings - Pivotal Research analyst Jeffrey Wlodarczak maintained a Buy rating on Charter Communications, raising the price target from $400 to $435 [4] - Rosenblatt analyst Barton Crockett maintained a Neutral rating, increasing the price target from $292 to $329 [4] - B of A Securities analyst Jessica Ehrlich also maintained a Neutral rating, boosting the price target from $360 to $385 [4]

Charter's surprisingly resilient earnings cause short-covering rally Charter's fundamentals on display Just as the 16% crash after the Q4/23 earnings release was an overreaction, I think Friday's rally was no different, just in a different direction. Short sellers were caught wrong-footed and hastily covered their bets, causing the price to overshoot on the upside. Over the next few months, the market will likely return to ignoring much of Charter's solid fundamentals and instead focus on short-term headwin ...