Why Charter Communications Is Plummeting 14% Today
Shares of Charter Communications (NASDAQ: CHTR) plummeted after hours on Tuesday, and are trading 14% lower on Wednesday as of 1 p.m. ET.
Late yesterday, the company held its investor day, the first under new CEO Chris Winfrey, who took over for departing CEO Tom Rutledge just last month. Unfortunately, it appears Winfrey's plan to spend aggressively to expand and upgrade Charter's network is rankling shareholders, who are used to ample capital returns in the form of share buybacks.
As part of Charter's new spending strategy, the company plans to spend about $10.65 billion on total capital expenditures in 2023, far higher than some investors expected.
Source Fool.com
