TBC - Why The Charter Communications Rally Might Not Last

2024-07-29 02:33:36 ET

Summary

• What propelled Charter stock 16% higher after earnings was likely mainly short-covering.
• The market had certainly expected much worse results, but Charter Communications' attractive fundamentals were nicely on display in Q2.
• On the other hand, near-term headwinds remain and short-term speculation will likely take over again.

Charter's surprisingly resilient earnings cause short-covering rally

As I have pointed out in my previous coverage of Charter Communications ( CHTR ), the stock is no stranger to outsized post-earnings moves. This well-known fact obviously attracts lots of short-term speculators. Six months ago, there was some speculation on a positive earnings surprise which then backfired, this time it was the opposite....

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