You've likely seen the commercials: Telecom companies pressing their case to enter the cable business. That competition will mean cheaper channels for all of us, and a big black eye to those monopoly-market cable companies that have been gouging us for years, the argument goes.
Cheaper cable, probably, but don't bet on the second half of that conjecture. In fact, bet against it. Cable companies haven't been lollygagging while the telecom industry makes its case and while satellite providers try to chip away at cable's dominance.
Cable is strong in several areas. In fact, the label "cable" is giving way to the acronym MSO, for "multiple service operators." In addition to hundreds of TV channels, cable MSOs provide high speed Internet connections (usually faster and more reliable than DSL service), and many are selling digital service that allows viewers to pick programs to watch at their leisure. With video on demand, you can download thousands of movies whenever you want. Plus cable MSOs are getting into phone service via the Internet, which may prove to hurt telecom companies more than telecom's forays into cable service will hurt cable companies.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Some cable companies are pushing this triple threat in ads, promising a discount on services if you consolidate with a single provider, and flaunting the convenience of a single monthly bill.
But with telecom looking like the barbarians at cable's gate, cable company stocks have been depressed. Shares of Comcast closed Thursday at $32.57, just $1 or so below its 52-week high. But that is far below the record high of $53 set in December 1999.
Comcast, the nation's largest cable operator, has been a strong performer, adding customers for cable, video-on-demand and Internet phone services. Analyst Spencer Wang of Bear Stearns resumed coverage of Comcast (symbol CMCSA) on Thursday with an "outperform" rating. He said Comcast is better than telecom companies at bundling products and offering faster services. Wang's target price for 2006 is $37.
-
AI vs the Stock Market: How Did Alphabet, Nike and Industrial Stocks Perform in June?AI is a new tool to help investors analyze data, but can it beat the stock market? Here's how a chatbot's stock picks fared in June.
-
Stock Market Today: A Historic Quarter Closes on High Notes"All's well that ends well" is one way to describe the second quarter of 2025, at least from a pure price-action perspective.
-
My Three-Day Rule for Investing: And If it Applies NowStock Market I've seen a lot in my career. Here's what I see now in the stock market.
-
Is It Time to Invest in Europe?Stock Market Europe is being shaken out of its lethargy, militarily and otherwise, by Donald Trump's changes in U.S. policy. Should investors start buying?
-
Fed Leaves Rates Unchanged: What the Experts Are SayingFederal Reserve As widely expected, the Federal Open Market Committee took a 'wait-and-see' approach toward borrowing costs.
-
Fed Sees Fewer Rate Cuts in 2025: What the Experts Are Saying
Federal Reserve The Federal Reserve cut interest rates as expected, but the future path of borrowing costs became more opaque.
-
Why Is Warren Buffett Selling So Much Stock?Berkshire Hathaway is dumping equities, hoarding cash and making market participants nervous.
-
Fed Cuts Rates Again: What the Experts Are Saying
Federal Reserve The central bank continued to ease, but a new administration in Washington clouds the outlook for future policy moves.
-
If You'd Put $1,000 Into Google Stock 20 Years Ago, Here's What You'd Have TodayGoogle parent Alphabet has been a market-beating machine for ages.
-
Fed Goes Big With First Rate Cut: What the Experts Are Saying
Federal Reserve A slowing labor market prompted the Fed to start with a jumbo-sized reduction to borrowing costs.
