Comcast Corp.'s typically steady stock price was down 9% on Monday after the tech giant's cable chief warned investors of high broadband losses.
The Philadelphia Business Journal reports the decline in share price would be Philadelphia-based Comcast's largest daily swing of the year in either direction, trumping a 6% increase on Nov. 6.
Comcast Cable CEO Dave Watson said on Monday the company's fourth quarter is resembling Comcast's first half of the year when it lost nearly 100,000 subscribers per quarter.
Watson, speaking at the UBS Global Media and Communications Conference, described competition in the space as "competitively intense," particularly with price conscious customers. He added that hurricanes Milton and Helene alone would result in about 10,000 net broadband losses in Florida.
"We could be looking at a broadband subscriber loss in Q4 of just over 100,000," Watson said.
The number would dwarf analysts' estimates of an expected loss of 64,400 customers, according to Reuters citing research firm Visible Alpha.
Wall Street traders were active in moving Comcast's stock on Monday. Over 30 million shares of the stock had been traded before 3 p.m., already well above the average volume of 18.14 million. Shares were trading around $39 on Monday afternoon.
The company's roughly $150 billion market cap as of early afternoon Monday was down from $165.12 billion on Friday.
Comcast also announced on Monday it renewed a partnership with Warner Bros. Discovery Inc. to distribute Warner Bros. portfolio of content to Xfinity and Sky customers through Comcast's linear television, apps and streaming services. Financial terms of the deal were not disclosed.
"We're looking for great economics that helps us serve every segment that we go after and being able to leverage video in a way that partners well with broadband," Watson said about the benefits of the renewed partnership.
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