What Happened?

Shares of internet, cable TV, and phone provider Cable One (NYSE:CABO) fell 36.7% in the morning session after the company reported weak first quarter 2025 results: Its number of residential data subscribers missed along with its revenue, EPS, and EBITDA. Sales fell nearly 6% from the same quarter last year, dragged by a 4.5% drop in residential data revenue and a nearly 16% plunge in residential video revenue, as Cable One neared the end of its legacy video product phase. Also, management suspended the dividend to conserve over $200 million over the next three years, signaling a pivot toward debt reduction and internal investment over shareholder returns. Overall, this was a nightmare quarter.

The shares closed the day at $152.06, down 42.1% from previous close.

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What The Market Is Telling Us

Cable One’s shares are quite volatile and have had 19 moves greater than 5% over the last year. But moves this big are rare even for Cable One and indicate this news significantly impacted the market’s perception of the business.

Cable One is down 58.2% since the beginning of the year, and at $153 per share, it is trading 64.1% below its 52-week high of $425.99 from November 2024. Investors who bought $1,000 worth of Cable One’s shares 5 years ago would now be looking at an investment worth $81.68.

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