About the Company
Comcast Corporation is a media and technology company based in Philadelphia that provides a variety of services worldwide. Its segments include broadband, theme parks, media, studios, streaming, and cable communication. Their Communications segment offers broadband, video, voice, wireless, and other services to both personal consumers as well as businesses. Their Media segment is responsible for television and streaming platforms, such as Telemundo and Peacock streaming service networks. They also have theme parks in locations including Orlando, Hollywood, California, Osaka, Singapore, and China. The company also owns the Philadelphia Flyers, as well as the Wells Fargo Centre arena in Philadelphia, Pennsylvania; and provides streaming service through Peacock.
Positive Hype
Comcast has recently gotten the exclusive US broadcasting rights for the Winter and Summer Olympics over the next decade, which will result in high advertising revenues and licensing fees in the future.
Their recent earnings reports have been quite good, with the company outperforming expectations in revenues as well as earnings.
The company also has a very strong dividend policy, and they have been constantly increasing their dividends year after year. Their dividend has recently increased by 8% for the 14th consecutive year. They keep returning their profits to the shareholders, which makes it a good dividend stock.
Their latest reports also show that they have a higher FCF than ever at $17.1 billion, which bodes well for their future prospects and acquisition strategies.
Their individual segments have also been performing quite well. For example, their theme park division just declared their most profitable 4th quarter, and their Orlando resort has been more profitable thai quarter than ever.
Their streaming service has also been performing well. Peacock has over 24 million subscribers, and it has just taken off a lot of content including Suits and SNL from Hulu to make it available exclusively on Peacock. In addition to this, the company just signed a deal for streaming WWE matches, and this will further boost their user base.
Negative Hype
Since Peacock has a free tiered option, a majority of the revenue that the company gets from streaming is through advertisements, and it is unclear how well increased subscribers will translate into increased ad revenues.
The company competes with Disney in almost all segments, and this reduces the competitive advantage that it might have with its future growth prospects.
Conclusion
While Comcast is definitely struggling with its brand development and image, the company has been successfully managing a variety of different divisions including streaming, theme parks, and broadband. Each of these divisions has been performing well individually, and the growth prospects for them are quite high to continue on this trajectory to massive profitability. The positive hype is definitely higher than the negative hype, and it is highly likely that the company’s stock price will go up in the coming days.
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