PHILADELPHIA — In a bad year for cable stocks, Comcast’s fall has been downright ugly.
Shares of the nation’s largest cable operator, which serves much of Colorado, tumbled to a 20-month low Wednesday after it disclosed that this year’s cable-revenue growth and cash flow will come in lower than expected. It said consumers were balking at increasing their spending and phone companies had stepped up competition.
Meanwhile, Comcast also raised its capital spending to push advanced digital set-top boxes and its digital services.
“Comcast’s announcement today is the worst of all possible worlds,” said Craig Moffett, senior analyst at Sanford Bernstein. “The promise of the cable stocks has always been (that) as growth decelerates, so too will capital intensity, and free cash flow will rise.”
