Macro

Charter Communications (CHTR) has seen its stock fall 66.7% over the past year, significantly underperforming the S&P 500's 23.4% gain, due to intense broadband competition and declining pay-TV customers. The stock, trading below key moving averages, also lags behind rival Comcast, despite a 'Hold' consensus and a 93.6% upside potential based on analyst targets.

On July 31, the Munich Regional Court ruled against AI music generator Suno in a copyright lawsuit brought by German collecting society GEMA. The court found Suno used copyrighted music to train its AI without a license, ordering it to disclose revenue and pay damages (amount pending). GEMA filed the suit in January 2025, alleging Suno's tool generated audio misleadingly similar to songs like Forever Young. Suno, which denies reproducing existing works, plans to appeal. The first-instance ruling follows GEMA's November 2025 win against OpenAI over song lyrics. Suno faces additional copyright claims from the RIAA and Denmark's Koda, while having settled with Warner Music Group.

Corning has outperformed Nvidia with a 129% stock return over the past year, driven by surging demand for its fiber-optic cables in AI data centers. The company's optical communications revenue grew 32% year over year to $2.1 billion in Q2 2026, with AI-related sales nearly doubling. Key deals include a $6 billion agreement with Meta and a similar pact with Amazon. Corning's new Multicore Fiber technology reduces cable needs by 75% for large GPU clusters. The company aims for $20 billion in annual revenue by 2026 and $40 billion by 2030, though its stock trades at a P/E of 44.5, with Wall Street projecting earnings growth to $4.28 per share by 2027.

T-Mobile US shares lagged in the second quarter of 2026, falling 24.39% over the prior 52 weeks, as investors grew concerned about a competitor building its own terrestrial mobile network. Advances in low Earth orbit (LEO) satellite technology, combined with complementary terrestrial technologies, could enable lower-cost mobile connectivity, threatening T-Mobile's competitive position. The Carillon Eagle Growth & Income Fund highlighted these competitive pressures in its Q2 2026 investor letter, noting that T-Mobile's stock closed at $177.21 on July 27, 2026, with a market cap of roughly $190 billion. The broader S&P 500 gained 15.2% in the quarter, driven by a sharp AI-related rally concentrated in semiconductor stocks.

Amazon has filed an FCC application to deploy 5,105 low Earth orbit satellites for a direct-to-device (D2D) telecom service, with launches beginning in early 2028. The constellation, nearly double the size of Amazon's initial Leo broadband network, will operate in five orbital shells at altitudes of 510–580 km, using Globalstar's spectrum for L-band and S-band mobile links and Ka/V-band for ground connections, with onboard processing and laser inter-satellite links. The system aims to provide voice, messaging, data, and emergency services globally, complementing Amazon's existing broadband network, and will target connectivity-starved areas, disaster response, fleet management, remote operations, IoT, and emergency messaging. Amazon's April acquisition of Globalstar for $11.6 billion secures the spectrum used for emergency connectivity on Apple iPhones and IoT devices, and the company plans to partner with mobile network operators and collaborate with Apple on future services. The FCC application also requests use of Iridium's spectrum outside the US, even as Rocket Lab acquires Iridium with expansion plans. Amazon has partnerships with Vodafone, DirecTV, Herotel, and Australia's NBN. The new D2D constellation intensifies competition with SpaceX's Starlink, which has a similar T-Mobile partnership and nearly 11,000 active satellites, as well as with AST SpaceMobile and Lynk Global. SpaceX plans to spend $20 billion buying spectrum from EchoStar for its mobile constellation, a key growth strategy in its IPO filings. However, satellite-to-mobile service value remains uncertain; T-Mobile's CEO reported that in May satellite usage was only 0.0002% of total network usage, mostly in national parks. Amazon's massive capital reserves—$255 billion in current assets—allow it to keep investing, while SpaceX's capital needs appear more pressing. The satellite industry faces limited rocket launch availability, a constraint that could slow deployment of next-generation constellations. Amazon's initial Leo broadband network has launched over 390 satellites out of over 3,000 originally planned, with service expected by year-end, but has faced launch delays including a Blue Origin rocket explosion and a May anomaly that destroyed a launch pad, forcing Amazon to request an FCC extension, which was granted in June on a roughly 1,600-satellite deadline falling this month. Cost estimates for the new D2D constellation range from $13 billion to $20 billion, assuming a design broadly in line with peers and launches handled largely by Blue Origin, Jeff Bezos's rocket company.

YouTube Premium subscribers in the U.S. will now receive Peacock Premium (ad-supported) at no extra cost, with an option to upgrade to ad-free Peacock Premium Plus. The expanded partnership between NBCUniversal and YouTube, announced in early 2027, also includes Peacock as a separate add-on via YouTube Primetime Channels later this summer (Peacock Premium Plus has been available there since June 2026), extends NBCU's distribution deal with YouTube TV (last renewed October 2025), and brings Universal+ and Hayu internationally through YouTube Premium in select markets. NBC Sports will produce and stream select live events on its YouTube channel, with some available for free. The deal deepens ad tech collaboration via FreeWheel and extends YouTube services on Comcast's Xfinity and Xumo platforms. YouTube Premium's price remains $15.99/month for individuals and $26.99 for families after a June 2026 increase, while Peacock Premium normally costs $10.99/month or $110/year. Peacock, which turned its first quarterly profit in Q2 2026, had 48 million subscribers as of June, while YouTube Premium and YouTube Music have a combined 125 million global subscribers (individual service counts not disclosed). The agreement is Peacock's largest wholesale distribution deal and comes ahead of NBCUniversal's planned spin-off from Comcast, expected in mid-2027, with Comcast co-CEO Mike Cavanagh set to lead the standalone company. The bundle includes live sports from the NFL, NBA, and MLB, as well as entertainment like Law & Order, Saturday Night Live, and Love Island. YouTube CEO Neal Mohan said the partnership redefines what a modern entertainment subscription can be, while Cavanagh highlighted the strategy of partnering with industry leaders to drive sustained growth. The deal signals a new phase in the streaming wars focused on aggregation, as NBCU allows Peacock content to appear on other platforms—a strategy it previously tested with Apple TV in late 2024, though that required an opt-in at a higher cost. NBCU executives felt YouTube offered the right deal economics to avoid cannibalizing Peacock's subscriber base, according to people familiar with the matter. The move targets YouTube's large, younger audience, potentially boosting advertising revenue for NBCU. Meanwhile, ESPN Chairman Jimmy Pitaro expressed interest in similar wholesale deals, and both Netflix and Disney are reportedly considering such arrangements, though NBCU has not been satisfied with offers from them due to concerns over subscriber overlap and deal terms. The aggregation trend could reshape the industry, with Paramount Skydance and Warner Bros. Discovery potentially joining the aggregator camp if their merger proceeds, while Fox's acquisition of Roku positions it on either side of the equation. This expansion makes YouTube Premium a more compelling alternative to Netflix, which has faced frequent price hikes and relies heavily on its own shows and licensed content, while YouTube already offers 20 million videos uploaded daily and now adds a top streaming service like Peacock. Alphabet's deep pockets and highly profitable business position it to compete aggressively in entertainment, potentially making it a safer long-term growth stock for investors.

Meta is in mid-trial settlement talks with U.S. states in Oakland, California, over claims that Facebook and Instagram are designed to be addictive to teens and harm their mental health. The trial, which began August 12, involves consumer-protection claims from California, Colorado, Kentucky, and New Jersey, plus federal COPPA claims from 29 states. Meta has agreed to pay up to $18 billion over 10 years, with 30% contingent on rival platforms TikTok and YouTube matching the terms, including a default night-time block, muted school-hour notifications, hidden like counts, and a ban on extreme makeup filters. The deal also imposes a default two-hour limit on its apps for users under 18. However, the states had calculated potential penalties of roughly $1.4 trillion, which Meta calls unsupported. A settlement could remove extreme courtroom outcomes, but investors should focus on nonfinancial terms—restrictions on recommendation algorithms, teen engagement tools, age verification, or data use—that may have longer-lasting consequences than a one-time fine. Meta faces thousands of related claims, and a March bellwether verdict found Meta and Google liable for social-media harm, with Meta allocated 70% of a $6 million award. The case is before U.S. District Judge Yvonne Gonzalez Rogers, and CEO Mark Zuckerberg is expected to testify. The settlement has opened a new front in a global government fight to protect children and curb addiction to platforms such as Facebook and Instagram. Governments around the world are trying to curb children's access to harmful online content, including a world-first ban in Australia late last year on social media for children under 16. Australian Communications Minister Anika Wells said social media companies 'have the tools at their disposal to protect young people from their addictive features but have chosen not to use them.' In South Korea, the media regulator said some of Meta's measures should be applied to young users worldwide, rather than just in specific markets. Malaysia, which has barred those aged under 16 from registering accounts on social media platforms, also welcomed the decision as a sign that social media platforms must be held accountable. The European Commission said it was waiting for Meta to present changes to limit the addictive designs of its social networks. The Commission already issued preliminary findings earlier this year that Meta breached the Digital Services Act (DSA). In July, it said Facebook and Instagram should disable autoplay and endless scrolling by default, introduce screen-time breaks and change recommendation systems to reduce incentives to keep users engaged — measures that go beyond the U.S. settlement. In April, the Commission said Meta had failed to stop children under 13 from opening or maintaining accounts. The U.S. settlement could make it harder for Meta to argue that tougher age-verification measures are impractical.

Alphabet CEO Sundar Pichai announced at the company's June 2026 investor presentation that AI Overviews now reaches 2.5 billion monthly users, with AI Mode serving over 1 billion monthly active users, making Google Search a major AI monetization channel. This reach contributed to $81.63 billion in total ad revenue in Q2, up 14% year over year, driven by Google Search revenue of $63.27 billion (up 16.7%), YouTube advertising of $11.05 billion (up 12.8%), and Google Network revenue of $7.3 billion (down slightly). Users engaging with AI features search more often, boosting query volumes and advertiser returns. Alphabet is accelerating Gemini's deployment into advertising and expanding Search with agents and personal intelligence. Capital expenditures are set to reach up to $205 billion in 2026, on top of $91 billion in 2025, with $44.9 billion spent in Q2 alone and $136 billion over the trailing 12 months. The company has taken on more than $114 billion in debt since early 2025, though it maintains over $242 billion in liquidity. Despite negative free cash flow of $5.9 billion in Q2, trailing 12-month free cash flow excluding capex stands at over $53 billion, and cash from operations reached $185 billion, supported by ad growth and improving Cloud margins. Google Cloud revenue surged 82% to $24.8 billion, with a backlog of $514 billion, as lower AI response costs also help. The stock trades 16% below its high as investors weigh AI spending against widening moats.

Charter Communications completed its acquisitions of Cox Communications and Liberty Broadband on August 20, 2026, creating the largest broadband and video company in the U.S. and the fastest-growing mobile provider in its footprint. The combined entity serves roughly 37 million customers across 45 states under the Spectrum brand, with Cox markets transitioning to Spectrum pricing and packaging by mid-September. The $34.5 billion Cox deal gave Cox Enterprises about 26% of Charter, with Alex Taylor becoming chairman and Chris Winfrey remaining CEO. Charter issued over 46 million shares to Cox Enterprises and assumed approximately $12 billion in Cox debt. In the concurrent Liberty Broadband transaction, Charter retired about 38.6 million shares and issued roughly 33.9 million new shares, resulting in a net decrease of 4.7 million shares outstanding, while assuming $840 million in net debt and $180 million in preferred equity. John Malone's Liberty Broadband ceased as a direct shareholder, and Eric Zinterhofer became lead independent director. Charter is offering Cox internet customers a free year of mobile service as a welcome benefit.

SpaceX is pivoting to become a vertically integrated AI infrastructure company, combining AI models, cloud services, and satellite connectivity. It recently secured $6.7 billion in cloud-services revenue and plans to acquire Cursor for $60 billion in 2026, aiming for over $100 billion in annualized revenue by December 2026. The company also plans to deploy AI compute satellites by 2028, creating space-based data centers. Competitors like Microsoft and Amazon are expanding their AI platforms, with Microsoft launching an Agent Store and Amazon enhancing its Bedrock service.

The S&P 500 closed at a record 7,798.99 on August 13, 2026, after hitting an intraday high of 7,816.70, the first time above 7,800. The tech-heavy Nasdaq Composite rose 0.8%, and the Dow Jones Industrial Average edged up 0.1%, snapping a three-session losing streak. The rally was fueled by a tame July Producer Price Index report showing wholesale prices unchanged month-over-month, below the expected 0.2% rise, and core PPI rising 0.2% versus the 0.3% forecast. This followed a soft July jobs report and CPI data that matched expectations, easing fears of a Fed rate hike. The 10-year Treasury yield fell to around 4.65%. Traders now see a 35% likelihood the Fed will hold rates steady in September, down from 55% a week ago. Technology and communications stocks led gains, with the Magnificent Seven mostly higher—Tesla surged nearly 4%—while Super Micro Computer rose another 4% after a strong earnings report, and Workday soared 18% on a Reuters report of acquisition talks with Silver Lake. The Roundhill Memory ETF advanced 4% on memory-chip stock gains. The Russell 2000 also hit a record. The S&P 500 has recovered about 22% from its 2026 trough below 6,400, triggered by the US-Iran conflict. Some strategists see a potential range of 7,800 to 8,100 through year-end but caution that high valuations raise pullback risks.

A record 5.9% surge in wireless telephone service prices in August, the largest single-month jump in nearly three decades, drove the core US consumer price index up 0.3%, exceeding the 0.2% forecast and cementing expectations for the Federal Reserve's first interest rate hike in three years, a 25-basis-point increase. The jump, which added about a tenth of a percentage point to core inflation, was linked to plan changes by carriers like T-Mobile, which retired over 1,000 older plans in late June, adding up to $6 per line per month, and AT&T, which hiked rates on older plans by $10 to $20 and increased a monthly per-line fee by $1 starting in August. Analysts noted the Fed would not exclude this one-time factor, reinforcing the case for a rate increase. Beyond pricing strategies by the Big 3 carriers—Verizon, AT&T, and T-Mobile—aimed at boosting per-customer revenue, rising costs stem from billions spent on 5G network buildout (over $30 billion last year) and record taxes, fees, and surcharges making up 27.6% of the average wireless bill.

Paramount Skydance shares rose 4% to $10.32 on Tuesday after the company reached a settlement with 12 state attorneys general, led by California AG Rob Bonta, and the Writers Guild of America, clearing the last major legal obstacle to its $110 billion acquisition of Warner Bros. Discovery. The deal, the largest in Hollywood history, had faced antitrust challenges that were resolved through weekend negotiations, avoiding a trial originally set for March 2027. Under the five-year settlement, Paramount Skydance committed to release 30 theatrical films in the first two years post-closing, most with wide releases and minimum exclusive theatrical windows, maintain independent cable network pricing, keep Pluto TV free, and pay penalties toward film-worker health care if release commitments are missed. The company also agreed to remain in California, maintain production levels, and provide editorial oversight guarantees for CBS News and CNN. CEO David Ellison told employees he expects the merger to close in approximately two weeks, just before a $7 million daily ticking fee to Warner Bros. Discovery shareholders begins on September 30. Warner Bros. Discovery stock traded flat at $30.80, having already priced in completion over the past month. The combined entity will unite major studios, HBO Max, Paramount+, CNN, and CBS, facing $79 billion in net debt. Critics, including Alvaro Bedoya of the American Economic Liberties Project, accused Bonta of caving to billionaire pressure after Paramount threatened to relocate to Texas or Tennessee. Regulators in the EU and UK had already cleared the deal.

SpaceX's Starship, the most powerful rocket ever built with more than double the thrust of the Saturn V and a 200-metric-ton payload capacity, aims to achieve full and rapid reusability—a 'holy grail' that could slash launch costs from ~$20 million per Falcon 9 flight to $2–5 million. CEO Elon Musk stated at the All-In Summit that Flight 14, targeting September 22 for its first orbital attempt, will be the last before attempting to catch the ship on Flight 15, with reflight of both booster and ship expected by early next year. Ark Invest's Cathie Wood, who previously invested in SpaceX pre-IPO through the ARK Venture Fund, predicts each launch could generate $1 billion in revenue, with 10,000 flights annually by 2030 potentially yielding $10 trillion, making SpaceX's $1.75 trillion IPO a deep value opportunity.

Amazon signed a multiyear, multibillion-dollar deal with Corning on June 8 for optical fiber, cable, and connectivity products, highlighting fiber as a strategic AI bottleneck. The agreement supports about 1,000 jobs in North Carolina and comes as Amazon pushes annual capital spending toward $220 billion. Corning also has a separate deal with Meta for up to $6 billion. The logic is physical: AI accelerators depend on network speed, and large clusters need dense optical connections. Amazon secures supply for its architecture, while Corning gains scale but faces risks from customer concentration and cyclical demand. Hedge-fund holdings increased for both companies.

Paramount began marketing a $44.4 billion debt offering on Monday to fund its acquisition of Warner Bros. Discovery, pending a federal judge's approval of an antitrust settlement. The offering includes $32 billion in investment-grade debt and $12.4 billion in high-yield bonds, with Bank of America and Citigroup marketing the debt. The deal's closing is uncertain, with an October 7 marker set for the offering. The only remaining condition is a federal court judge's approval of a settlement with 12 state attorneys general, which was not granted at a September 24 hearing. Paramount expects to use the proceeds, along with cash and other financing, to fund the purchase, with total cash consideration to WBD stockholders estimated at $78 billion. The merged company will carry over $80 billion in long-term debt, with annual interest expenses exceeding $6 billion.

The Supreme Court will hear arguments on Oct. 14 in a case testing whether the 1988 Video Privacy Protection Act, enacted after a newspaper published Robert Bork's rental records, applies to modern targeted advertising. Michael Salazar sued Paramount Global, alleging 247Sports.com shared his video-watching history with Meta for ads without consent. Paramount argues the law, designed for video rental stores, doesn't cover free online content. Privacy advocates say the law is crucial amid widespread data tracking, while business groups warn a ruling against Paramount could upend the ad-funded internet model. A decision is expected by June.

Apple's iOS 27 update, implemented through WebKit, blocks major adtech firms like The Trade Desk, ID5, LiveRamp, Permutive, and Audigent from using advertising identifiers across browsers on iPhones, and in some cases prevents ad serving entirely. The move, reported by AdExchanger, targets post-cookie alternative identifiers, shrinking advertisers' ability to reach users on the open web and potentially reducing publisher ad revenue. Apple told The Trade Desk it made changes in a beta release to unblock its ad-serving domain, but the fix won't ship until iOS 27.2, likely in late Q4. Adtech leaders criticize Apple's opacity and unilateral power, with a dynamic block list that can be updated remotely without notice, prompting calls for government regulation over corporate privacy enforcement.

SpaceX is in advanced talks to lease at least 80,000 U.S. cell sites—roughly half of all purpose-built towers—from major owners like Crown Castle, a move that would position the company as a fourth national wireless carrier challenging Verizon, AT&T, and T-Mobile. The negotiations, reported by Bloomberg on Thursday evening, follow SpaceX’s $8 billion purchase of low-band wireless spectrum on Oct. 9 and its existing base of over 13.6 million Starlink subscribers. Bernstein analyst Laurent Yoon estimated the total commitment could reach around $30 billion, calling it a potential point of no return for a terrestrial network. The news roiled markets on Friday: tower owners surged—Crown Castle up 9%, American Tower up 4%—while carriers plunged, with T-Mobile falling 7.7% to $146.54, its lowest close in a year, AT&T dropping 8% to $21.79, and Verizon sliding 1.2% to $43.70. T-Mobile's decline was its second such drop of at least 7.7% in the prior 365 days, following a 13.3% fall on Oct. 9, 2026; the stock has lost 34.2% since Oct. 22, 2025, and 16.8% since July 27, 2026. However, industry executives warn that building a competitive network will take years and cost hundreds of billions of dollars. Verizon CEO Dan Schulman, who previously argued that satellite technology cannot serve dense urban markets, said on Monday's earnings call that "there's no magic wand. There's no secret sauce. There's no shortcut. There's no radically lower structural cost advantage." He noted SpaceX would likely need 65,000 to 80,000 sites plus backhaul, fiber, spectrum, and radio access network capacity. AT&T CEO John Stankey warned that matching incumbents' performance levels requires years of investment. SpaceX's service is not expected to launch commercially until late 2027, starting with no wireless customers and less spectrum than incumbents. The sell-off may be overdone, as building a competitive network would take years, and the industry has previously operated with a fourth competitor (Sprint) without dramatic pricing shifts. Goldman Sachs analysts noted that at an average lease cost of roughly $50,000 per tower per year, an 80,000-tower network could generate $4 billion in annual rental payments, or $20 billion to $40 billion over a typical five- to 10-year leasing period. The incumbents each lease space on approximately 60,000 to 80,000 U.S. cell towers, while the country has about 175,000 traditional towers overall. T-Mobile is set to report third-quarter results later in October 2026, with management expecting net postpaid account additions of about 250,000, held back by a temporary rise in churn from rate plan modernization.

SpaceX's Starlink unit has agreed to acquire an 800 MHz spectrum portfolio from Grain Management for $2.9 billion, a deal that sent T-Mobile shares plunging 13% on October 9—its worst single-day drop since going public in 2013—before rebounding 3% to $152.65. Verizon rose 2% to $42.43, AT&T gained 0.8% to $22.36, and SpaceX stock ticked up 0.7% to $163.73. The low-band 800 MHz spectrum, originally divested by T-Mobile after its 2020 Sprint merger and later acquired by Grain after Dish failed to raise funds, penetrates buildings far better than Starlink's existing 2 GHz satellite signal, enabling reliable indoor and outdoor coverage without terrestrial towers. SpaceX says the addition 'will pave the way for Starlink Mobile to become a major mobile carrier in the US,' threatening legacy carriers' high-margin enterprise, emergency service, rural, and international roaming revenues. Currently, Starlink Mobile serves T-Mobile customers for emergency and supplemental use in dead zones via Direct to Cell, which connects existing 4G LTE handsets. The new spectrum will expand text, talk, and broadband capabilities. Analyst Gene Munster suggested SpaceX may eventually develop a vertically integrated phone, posing a greater threat to Samsung than Apple. KeyBanc analyst Brandon Nispel noted the acquisition makes Starlink a more credible mobile operator. AT&T CEO John Stankey acknowledged Starlink's potential in rural and IoT applications but sees a complementary dynamic, with AT&T aggregating traffic for satellite operators. The deal requires FCC approval, and a regulatory filing would convert the capability into a process with a clear timeline. T-Mobile is down 23% year-to-date, making it harder to isolate satellite risk from broader pressure. Despite the threat, Verizon remains the largest U.S. carrier in a $350 billion market and trades at under 9 times forward earnings. Elon Musk called the 800 MHz licenses 'the last critical piece of the spectrum puzzle needed for SpaceX to provide complete phone coverage in America.' Starlink aims to become the first network operator to deploy both satellite and terrestrial spectrum, offering 'one network that provides Americans with a reliable service indoors, outdoors, in cellular dead zones, and everywhere in between.' While Starlink is primarily known for satellite internet, its mobile ambitions are serious, with reports of a potential own-brand smartphone. However, Starlink faces price complaints and competition from established carriers offering bundled internet and mobile services.

Alphabet shares plunged 10% in pre-market trading after a rare double-miss in Q3 earnings, marking one of its largest post-earnings declines. The company reported $127.57 billion in revenue, slightly below the $128.2 billion consensus, while earnings per share of $2.12 badly missed the $3.02 estimate. Net income fell to $26 billion, nearly $9 billion lower than last year. Search advertising revenue of $63.4 billion fell short of the $64.9 billion expected, fueling fears that AI chatbots like ChatGPT and Claude are eroding Google's search dominance. Chief business officer Philipp Schindler noted that AI Mode queries generate less revenue than standard web searches due to fewer and cheaper ads. Google also posted negative free cash flow of $9.1 billion, far worse than the expected negative $3.5 billion, raising jitters about Big Tech spending. Despite these headwinds, cloud revenue surged 103% to $30 billion, beating expectations, and CEO Sundar Pichai highlighted that Search queries grew at their fastest rate in five years, with AI Mode queries three times longer and 50 billion visual searches monthly. The AI-powered Search ads expansion includes international markets and new multi-turn ad formats, with early click-through rates for sponsored AI listings comparable to organic ones. Google plans to increase AI spending next year.