New York, Feb 1, 2026, 07:10 EST — The market has closed.
- Liberty Broadband shares closed Friday up 7.7%, tracking Charter’s jump after its earnings report
- Charter reported a slowdown in broadband losses, yet revenue declined and fell short of analyst expectations
- Attention now turns to deal terms, the challenge from wireless broadband, and Liberty’s Q&A call set for Feb. 11
Shares of Liberty Broadband Corporation jumped 7.7% to close at $48.02 on Friday, following a 7.6% gain in Charter Communications. Investors seized on early signs that cable broadband churn could be leveling off. U.S. markets are closed Sunday and will reopen Monday.
This move is significant for Liberty Broadband because it effectively acts as a stand-in for Charter stock. In its annual report filed Friday, Charter disclosed that Liberty Broadband’s main assets include roughly 41.5 million shares of Charter Class A stock. Liberty shareholders are set to receive 0.236 of a Charter Class A share for each Liberty share once the pending deal closes. The filing also notes the transaction’s “outside date” is Aug. 31, 2027, with a side letter potentially moving the closing up to sync with Charter’s separate Cox deal. (SEC)
Charter, known for its Spectrum brand, reported a 2.3% drop in fourth-quarter revenue to $13.6 billion. Adjusted EBITDA slipped 1.2%, landing at $5.7 billion. The company lost 119,000 internet customers but gained 428,000 mobile lines. It projects capital spending around $11.4 billion for 2026. “Our focus in 2026 is to message our product utility, value and high-quality service to customers,” CEO Chris Winfrey said in the release. (PR Newswire)
Despite Friday’s rally, the debate lingers. Charter lost fewer internet customers than analysts predicted, but revenue still fell short. New Street Research’s Vikash Harlalka remarked, “We think it will be a while before we see a major improvement in Charter’s broadband subscriber trends.” Winfrey highlighted the wind-down of a long buildout, adding: “In 2026, we’ll nearly complete our rural build-out, providing us with over 1.7 million new subsidized rural passings.” (Reuters)
Competition is lurking in the background. Verizon posted its strongest quarterly wireless subscriber growth in six years, fueled by aggressive promotions, and followed up with a $25 billion share buyback plan. It also projected higher profit and free cash flow for 2026. This matters for cable because “fixed wireless” home internet—offered through mobile networks—has gained traction as a viable option for some households. (Reuters)
Liberty Broadband holders face a clear early test on Monday: will Charter’s rally stick once investors dig back into the quarter’s numbers? Liberty typically tracks Charter’s swings, with deal calculations and the implied exchange value lurking just beneath the surface.
Traders are also scanning for updates on the timing and regulatory risks tied to Charter’s planned Cox deal and the Liberty Broadband merger. Either could shift the spread between Liberty and Charter on any given session.
The downside is clear. Should broadband losses pick up again, or if wireless and fiber discounts deepen due to promotions, Charter’s cash flow could take a hit, and Liberty’s gains might evaporate fast. On the flip side, deal uncertainty works against the stock: a lengthy delay or regulatory hurdles could push the discount wider, even if Charter’s shares hold steady.
Liberty Broadband’s quarterly Q&A session is set for Wednesday, Feb. 11 at 11:15 a.m. ET, following prepared remarks on GCI Liberty’s fourth-quarter earnings call. Investors will probably zero in on the Charter stake and the timeline for any deals. (SEC)
