Shares of Comcast, the largest cable operator in the US, plunged after the company said cable revenue will grow slower than expected this year and capital costs will be higher as it battles increased competition and a slowing economy, an Associated Press report said.
The Associated Press report said the stock dropped $2.14, or more than 10%, to a 20-month low of $18.59. In the past year, Comcast shares have ranged from $18.83 to $30.18. The news also pressured other cable stocks: Time Warner Cable slid 6% to $25.37 while shares of Cablevision Systems fell 5% to $25.44.
The slowdown began at the start of the third quarter as consumers tightened their belts, demand softened and phone companies started gaining traction with promotions of their own video services, the report said.
Comcast is considering rolling out lower-priced services, such as an internet and phone bundle for customers who don't get its cable TV service, the report said.