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Comcast's (CMCSA) Online TV Services & 5G Plans Bode Well
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On Mar 28, we issued an updated research report on leading cable MSO (multi service operator) and media and entertainment firm Comcast Corp. (CMCSA - Free Report) .
Positives
Comcast is currently working toward the deployment of 5G network.
On Mar 24, Comcast announced that it has gained the rights to offer online TV services outside its regional territories to cities like New York and Los Angeles. The cable MSO reportedly received the rights from several unnamed cable network using the ‘most favored nation’ clauses in its contracts. However, the company remains focused on bringing in new cable-TV subscribers from the traditional cable TV service markets. Comcast’s Cable business is pretty well poised, as evident from its last reported quarterly results. The NBC Universal segment is also witnessing significant improvement.
Comcast has forayed into the over-the-top video delivery market with the launch of the Internet TV service – Stream. With this, Comcast aims to check customer churn and provide viewers with more streaming options. Comcast is also planning to start its own wireless service from mid-2017.
The deal to acquire the remaining 49% stake in Osaka-based Universal Studios Japan (USJ), for $2.3 billion (254.8 billion yen) also goes well with its theme park business expansion strategy.
Comcast recently has concluded its proposed acquisition of certain useful assets of Icontrol Networks Inc., a major developer of Internet-of-Things (IoT) and smart-home products. This should boost the company’s IoT suite.
Price Performance
Comcast has underperformed the Zacks categorized Cable Television industry over the past three months. The company’s shares rallied around 6.1% compared with a roughly 7.9% gain recorded by the industry over the same time frame.
The underperformance can be attributed to an intensely competitive and consolidative U.S. pay-TV industry. Charter Communications Inc.’s (CHTR - Free Report) twin buyout of Time Warner Cable and Bright House Networks has heightened competition in the industry. The consolidation trend among telecom and cable TV operators has also put pressure on the company. If the proposed acquisition of Time Warner Inc. by AT&T Inc. (T - Free Report) bodes well, the combined entity will pose stiff competition to Comcast in terms of media business as well. Notably, AT&T will be in a face-off with Comcast in the wireless segment as the latter announced plans to enter the wireless service business in 2017.
Mounting programming expenses and operating costs as well as a debt laden balance sheet are the other near-term risks for the company.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>
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Comcast's (CMCSA) Online TV Services & 5G Plans Bode Well
On Mar 28, we issued an updated research report on leading cable MSO (multi service operator) and media and entertainment firm Comcast Corp. (CMCSA - Free Report) .
Positives
Comcast is currently working toward the deployment of 5G network.
On Mar 24, Comcast announced that it has gained the rights to offer online TV services outside its regional territories to cities like New York and Los Angeles. The cable MSO reportedly received the rights from several unnamed cable network using the ‘most favored nation’ clauses in its contracts. However, the company remains focused on bringing in new cable-TV subscribers from the traditional cable TV service markets. Comcast’s Cable business is pretty well poised, as evident from its last reported quarterly results. The NBC Universal segment is also witnessing significant improvement.
Comcast has forayed into the over-the-top video delivery market with the launch of the Internet TV service – Stream. With this, Comcast aims to check customer churn and provide viewers with more streaming options. Comcast is also planning to start its own wireless service from mid-2017.
The deal to acquire the remaining 49% stake in Osaka-based Universal Studios Japan (USJ), for $2.3 billion (254.8 billion yen) also goes well with its theme park business expansion strategy.
Comcast recently has concluded its proposed acquisition of certain useful assets of Icontrol Networks Inc., a major developer of Internet-of-Things (IoT) and smart-home products. This should boost the company’s IoT suite.
Price Performance
Comcast has underperformed the Zacks categorized Cable Television industry over the past three months. The company’s shares rallied around 6.1% compared with a roughly 7.9% gain recorded by the industry over the same time frame.
The underperformance can be attributed to an intensely competitive and consolidative U.S. pay-TV industry. Charter Communications Inc.’s (CHTR - Free Report) twin buyout of Time Warner Cable and Bright House Networks has heightened competition in the industry. The consolidation trend among telecom and cable TV operators has also put pressure on the company. If the proposed acquisition of Time Warner Inc. by AT&T Inc. (T - Free Report) bodes well, the combined entity will pose stiff competition to Comcast in terms of media business as well. Notably, AT&T will be in a face-off with Comcast in the wireless segment as the latter announced plans to enter the wireless service business in 2017.
Mounting programming expenses and operating costs as well as a debt laden balance sheet are the other near-term risks for the company.
Comcast currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>