Charter Communications, Inc. (CHTR): A Bull Case Theory 

We came across a bullish thesis on Charter Communications, Inc. on Cornerstone Value’s Substack. In this article, we will summarize the bulls’ thesis on CHTR. Charter Communications, Inc.’s share was trading at $206.67 as of January 12th. CHTR’s trailing and forward P/E were 5.73 and 4.82 respectively according to Yahoo Finance.

Charter Communications (CHTR) reported third-quarter results that largely aligned with expectations, though the stock initially reacted negatively, gapping down 6.5% before recovering to close +1.3% as investors digested the nuances of the report. Revenue and EBITDA showed modest year-over-year declines of 0.9% and 1.5%, respectively, but adjusting for one-off merger costs, political cyclicality, and accounting changes, adjusted revenue grew 0.4% and EBITDA was roughly flat.

Broadband remains under pressure, with the company losing 109k subscribers amid fierce competition from fiber and AT&T’s FWA rollout, though ARPU remains intact. Mobile continues to be a bright spot, delivering 22% year-over-year subscriber growth and approaching 20% penetration in its footprint, with potential to reach 50% over the next five years, and management anticipates ARPU inflection by 2027.

Video net losses moderated due to streaming bundles, helping alleviate concerns over structural declines in cable TV. Cash flow generation is robust, aided by OBBBA tax benefits and normalized working capital, allowing Charter to resume aggressive buybacks, repurchasing $1.8 billion in shares this quarter and reducing the share count by 2.4%.

Peak capital expenditures are expected to moderate starting in 2H25, further enhancing free cash flow, which could nearly double over the next two years even absent significant revenue growth. Strategic optionality, including new business mobile offerings through a T-Mobile MVNO partnership, adds upside potential, while John Malone’s retirement marks the end of an era without expected strategic disruption. Despite interim volatility and a challenging competitive environment, Charter remains a high-conviction long, with its combination of resilient core businesses, accelerating FCF, and shareholder returns supporting a compelling long-term risk/reward profile.

Previously we covered a bullish thesis on Verizon Communications Inc. (VZ) by Charly AI in April 2025, which highlighted the company’s strategic investments in 5G, IoT, and fiber expansion, strong cash flow, and improving financial metrics despite legacy headwinds. The company’s stock price has depreciated approximately by 5.52% since our coverage. This is because the thesis didn’t fully play out. Cornerstone Value shares a similar bullish perspective but emphasizes Charter Communications’ accelerating buybacks, mobile growth, and free cash flow as key drivers of long-term value.

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Disclosure: None.