Why Harmonic Stock Is Skyrocketing Today
Shares of Harmonic (NASDAQ: HLIT) are seeing huge gains in Wednesday's trading. The telecommunications equipment company's stock was up roughly 9.5% in the daily session as of 11:40 a.m. ET today following encouraging news from one of its key customers.
Charter Communications (NASDAQ: CHTR) laid out its capital expenditure plans for 2023 yesterday, outlining a spending plan that has in turn prompted investors becoming increasingly bullish on Harmonic stock. The communications software-and-hardware maker provides multiple technologies to Charter communications, and news of the telecom company's massive capital-expenditures plans bodes well for Harmonic's sales outlook in the near future.
Charter held its annual investor day presentation after the market closed on Dec. 13, laying out plans that appear to be good news for Harmonic. Charter stated that it plans to spend $5.5 billion on network evolution initiatives in 2023 -- a large spending outlay will hurt the company's profitability in the near term. The company also plans to make additional upgrades in 2024 and 2025.
Source Fool.com
