Longtime cable sector analyst and bull Craig Moffett of MoffettNathanson sent cable plays like Comcast Corp. (CMCSA) and Charter Communications, Inc. (CHTR) tumbling Tuesday afternoon after he downgraded the sector to "neutral" from "overweight."
Moffett also downgraded Comcast to "neutral" from "buy" while maintaining his "neutral" rating on Charter. Comcast shares were down 3.3% to $40.42, as Charter shares fell 2.08% to $333.17
"Most bear cases we've heard for cable over the years have bordered on the apocalyptic. The video business will be crushed by the internet. The broadband business will be replaced by wireless. And so on," Moffett said. "None of these bear cases are particularly persuasive. A more credible argument is much more pedestrian ... the rate of broadband growth will inevitably slow, and likely at precisely the same time that video growth rates are also under pressure."
What's Hot On TheStreet
TheStreet's Lindsay Rittenhouse went shopping online at Ohio stores to see how Whole Foods stacked up against Walmart Stores Inc. (WMT) and rival grocer Kroger (KR) . While the results may not be shocking, they show just how much Amazon will have to cut for Whole Foods to be on equal footing with some of its competitors.
The cost of eight everyday food items at Whole Foods, TheStreet found, were nearly double those of the ones at Walmart, but Kroger undercut them both. Whole Foods' basket cost $38.29; Walmart's, $19.86; and Kroger's, $16.58.
With data as shocking as this, it's no wonder Whole Foods founder John Mackey is in love with Amazon.
Tesla's stock is out of control: Tesla Inc. (TSLA) shares are expected to have a strong session amid reports Elon Musk's electric car baby may open a new production facility in China. Such a move would avoid tariffs in the world's second-largest economy, but risk the ire of U.S. President Donald Trump's "buy American, hire American" industrial policy, TheStreet's Martin Baccardax reports.
Tesla's market cap is now more than $60 billion and climbing, despite the company continuing to lose money. Ford's (F) market clocks in at $44.7 billion, while General Motors (GM) stands at $51.9 billion.
Worried about how to pay for your golden years? Ken Fisher, founder of Fisher Investments, and TheStreet's Jim Cramer will tell you what you need to know in a June 21 webinar on the market trends that are shaping retirement planning today. Register here for the event, which starts at 11 a.m. ET.
Visit here for the latest business headlines.