Will Broadband Stocks Keep Leading the Nasdaq Lower?
The Nasdaq Composite (NASDAQINDEX: ^IXIC) lost its upward momentum on Wednesday afternoon, as the latest announcement from the Federal Reserve on interest rates took the wind out of the stock index's sails. By the end of the day, the Nasdaq had fallen three-quarters of a percent, and Nasdaq futures signaled another likely 1% decline Thursday morning.
One area of the market that notably weighed on the Nasdaq's performance was the broadband industry. Two related companies in the space saw their stock prices plunge on Wednesday, putting downward pressure on some of their rivals. Given the announcement that Charter Communications (NASDAQ: CHTR) made regarding its business prospects, the question investors are asking is whether the broadband industry will see its future performance suffer as it strives to keep up with the pace of innovation in entertainment and communications.
Shares of Charter Communications dropped 16% on Wednesday following its investor day presentation. Despite long discussions about the growth opportunities that Charter has, shareholders focused their attention on how much money the broadband company expects to spend investing in its business initiatives.
Source Fool.com
