Charter may be making ‘frenemies’ with SpaceX, and its stock is soaring

The disruptive impact of SpaceX's Starlink competition on the telecommunications industry may threaten CHTR's existing wired internet and cable TV business model; however, there is potential to create new business opportunities (e.g., 5G backhaul, satellite communication integration) through a 'frenemy' strategy (cooperation and competition). While the short-term financial burden is minimal, there are concerns about increased CAPEX and margin pressure in the long term.

Recommend accumulating at the support level of $420. There is potential for further upside if the resistance level of $460 is breached; however, due to concerns of overheating, a strategy of gradual buying should be considered.

1) Creation of new revenue models due to the potential collaboration with SpaceX (integration services with Starlink, provision of 5G backhaul, etc.). 2) Acceleration of the threat to wired internet alternatives due to the expansion of Starlink's low Earth orbit satellite communications. 3) Increased investor interest following Oppenheimer's $1.6T thesis on the disruption of the telecommunications industry. 4) Potential for premium valuation in the market if CHTR's 'frenemy' strategy is successful.