Charter will continue to implode

Charter stock is continuing to fall and that trend will continue until several major things happen, and I doubt any of those things are going to happen until the stock gets under 125 or even under $100 .

Their subscriber losses will continue because their products are not competitive relative to wireless Internet, offerings from Verizon, T-Mobile Xfinity now Starlink.

Charter has spent years building up a pyramid scheme like system of useless middle management that makes managers at the top feel more important because of all the direct reports under them.

The software engineers that they have are mostly useless. The IT contractors on H1B vases that they have are most mostly useless.

The merger with Cox will not save them and only exasperate the problem. They are not buying a company offering a new competitive product they’re buying more of the same dying broadband industry.

The only moat they have left is fiber.

If they want to turn it around, they need to cut 90% of the middle management layers and 50% of the software engineering staff, and 90-100% of their contractors in engineering departments.

All of the contractors can be replaced with AI. You don’t need to hire a 20 H1B visas to spend 6 quarters building out an MVP. Two good engineers with AI assisted development can do it in 1 quarter.

They’ll find out quite quickly that their productivity won’t change much at all.

And then once they do that they’ll have some headroom to begin to lower their broadband prices and make them competitive with wireless Internet providers.

Combined with their packaged offerings of a mobile service, (which is actually very cheap) they could save a company.