Can the Cox Acquisition Reverse Charter Communications’ (CHTR) Broadband Growth Concerns?

Alluvium Asset Management's Conventum – Alluvium Global Fund released its second-quarter 2026 investor letter, highlighting Charter Communications, Inc. (NASDAQ:CHTR) as a case study in broadband growth concerns. The Q2 2026 letter can be accessed online, reflecting a mixed portfolio performance. While Alphabet thrived due to robust Cloud growth, Charter Communications suffered significant losses following its Q2 2026 results release.

The company's ARPU remained flat and it encountered a substantial decline in internet subscribers, exacerbated by intense competition from fixed wireless providers and Starlink satellite services. The market's pessimism around Charter Communications' flat ARPU stems from its decision to offer lower-priced, high-quality services, leading to a decline in internet customers.

Despite this, Charter Communications is experiencing growth in mobile subscribers and more than half of its residential customers subscribe to multiple products. Management sees the upcoming Cox acquisition as a potential positive, with increased expected synergies of 60%. The fund's view is that while Charter Communications may offer investment potential, other AI stocks present more significant upside and lower risk.