Wells Fargo Securities analysts issued a stark warning for cable operators on January 13, 2026, downgrading all four major cable stocks including Charter Communications (CHTR), Comcast (CMCSA), Optimum (OPTU), and Cable One (CABO) to Underweight.
The analysts forecast cable companies losing 1 million residential broadband subscribers in 2026 amid fierce competition from fixed wireless access and fiber, which together will claim 100% of net broadband adds.
“We rate all Cable stocks Underweight… we downgrade CHTR to Underweight – new $180 PT,” the analysts stated, citing elevated estimate risks from accelerating penetration declines.
In the broadband sector, fixed wireless access and fiber are projected to dominate growth, with fixed wireless access adding nearly 4M subscribers in 2025 and maintaining around 3.7M net adds in 2026 across T-Mobile, Verizon, and AT&T, per the Wells Fargo report.
Wireless carriers face subscriber deceleration, with postpaid phone net adds dropping 10% for major mobile network operators in 2026 to around 4% industry-wide including cable, due to saturation, immigration headwinds, and fewer price hikes.
Top picks remain TMUS and T, with TMUS highlighted for 7% organic EBITDA growth in 2026 and nearly 20% FCF surge in 2027, underpinned by better-than-feared subscriber adds and a service revenue premium.