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Charter Falls a Record 16% as Spending Alarms Wall Street

  • Cable upgrade will cost $5.5 billion to speed up data traffic
  • Infrastructure spending boost limits share buyback program
Workers unspool high-speed internet cable. 

Workers unspool high-speed internet cable. 

Photographer: Michaela Handrek-Rehle/Bloomberg
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Charter Communications Inc. stock fell by largest percentage in its trading history after announcing a broadband expansion plan that will cost far more than analysts anticipated.

The second-largest US cable company unveiled a three-year network spending budget starting with $10.7 billion next year, $1 billion more than analysts estimated. The boost in spending will lead to “higher generational growth,” new chief executive officer, Chris Winfrey, told investors Tuesday evening.