Cable Stocks Are Tough to Own (Again) for a Whole New Reason
The cord-cutting movement has certainly proven frustrating for cable television companies. Ditto for their shareholders. There's been some solace in the fact, however, that growth of cable companies' broadband businesses has offset this sweeping attrition of their cable TV customers.
Now, broadband's growth is close to hitting a wall. That's the takeaway from a study recently published by telco market research outfit Leichtman Research Group. The United States' high-speed internet market is nearing -- or perhaps even at -- the point of saturation. From this point forward, the best that the industry's key players can hope for is simply swapping existing customers with one another.
What does this mean for investors in the companies? Let's take a look.
Source Fool.com
