# Charter shares drop 8% as CFO warns of potential broadband subscriber losses in Q4
In this article, we discuss the recent drop in Charter Communications’ stock and the warning issued by its Chief Financial Officer, Jessica Fischer, regarding potential broadband subscriber losses in the fourth quarter. We also highlight the impact on competitor Comcast’s stock. Additionally, we explore the factors contributing to Charter’s subscriber decline and the company’s efforts to expand its broadband coverage.
## Charter and Comcast stocks experience decline
Charter shares closed down by more than 8% on Tuesday following statements made by CFO Jessica Fischer. Similarly, Comcast’s stock also closed down by more than 3%. These declines come as a result of concerns over potential broadband subscriber losses in the fourth quarter.
## Factors contributing to subscriber decline
During the UBS Global Media and Communications Conference, Fischer expressed her belief that Charter could experience negative internet net adds in Q4. The company already saw a drop in subscribers in October due to its dispute with Disney and higher interest rates. November’s subscriber numbers were also “similarly soft,” according to Fischer.
## Charter’s efforts to expand broadband coverage
Despite the subscriber decline, Charter has been investing billions in expanding its broadband coverage to rural and underserved communities. In the third quarter alone, the company spent $1.1 billion on line extensions driven by rural expansion efforts. However, these expansions have had limited value due to challenges in the housing market.
## Housing market challenges affecting Charter
The housing market has suffered in recent months due to rising interest rates and tight supply. Mortgage demand is also at its lowest point in nearly 30 years. These factors have impacted Charter’s subscriber growth as fewer people are buying homes, resulting in reduced demand for broadband services.
## Potential rebound and value creation
Despite the challenges, Fischer remains optimistic about Charter’s future subscriber growth. She believes that a potential rebound in the housing market will drive demand for broadband services. Additionally, the inclusion of Disney+ in some Spectrum plans will add value and enhance Charter’s competitiveness.
In conclusion, Charter Communications’ stock experienced a significant decline following CFO Jessica Fischer’s warning about potential broadband subscriber losses in the fourth quarter. The company has been investing in expanding its broadband coverage, but challenges in the housing market have limited its growth. However, Fischer remains hopeful for a rebound and believes that value creation through partnerships like the one with Disney will drive Charter’s competitiveness.
*Disclosure: Comcast owns NBCUniversal, the parent company of CNBC.*
## Don’t miss these stories from CNBC PRO:
– [Saudi Arabia is struggling to boost oil prices, raising possibility of supply war with U.S](https://www.cnbc.com/2023/12/01/saudi-arabia-is-struggling-to-boost-oil-prices-raising-possibility-of-supply-war-with-us-.html)
– [Here’s where to invest $250,000 for the next 5 years](https://www.cnbc.com/2023/12/04/heres-where-to-invest-250000-for-the-next-5-years.html)
– [Citi is so bullish on this biotech stock it gives it 800% potential upside](https://www.cnbc.com/2023/11/29/citi-is-so-bullish-on-this-biotech-stock-it-gave-it-an-800percent-upside.html)
– [‘It’s beginning to look a lot like VIX-mas.’ What Wall Street’s fear gauge is saying right now](https://www.cnbc.com/2023/11/29/its-beginning-to-look-a-lot-like-vix-mas-what-wall-streets-fear-gauge-is-saying-right-now-.html)
