Communications platform Comcast (CMCSA) had some bad news for shareholders today, and they did not take it well at all. Comcast looked for further losses in its broadband division, thanks in large part to growing competition from an array of providers, as well as the still-ongoing impact of Hurricanes Helene and Milton. Shareholders dashed for the exits and took over 10% of Comcast’s market cap with them.
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Reuters brought out the bad news that Comcast was likely to not see any kind of gains from broadband subscriber figures. In fact, it was likely to lose, and in a broader fashion than Wall Street projections looked for. Analysts looked for 64,400 subscribers to depart Comcast this quarter, but Comcast itself looks for just over 100,000.
Around 10,000 of those losses are connected to the hurricanes. North Carolina was particularly hard-hit and is still digging out with varying degrees of success. And with several competitors entering the field, including cable, fiber, and wireless options like T-Mobile’s (TMUS) 4G LTE and the Starlink system, the end result is a deep impact on Comcast. Plus, with the Affordable Connectivity Program (ACP) running out of steam at the federal level and a Trump administration not likely to renew it, that is another blow to Comcast.
Max Bundling Rights
Not long ago, we suggested that Warner Bros Discovery (WBD) might take an interest in offering up the rights to its Max streaming platform in the United Kingdom and Ireland to Comcast. That has come to pass, notes a Variety report, though the deal will not kick in until 2026 when the current rights run out.
The plan actually goes beyond that, the report noted. Comcast will also get the right to bundle Max in the United States, though Comcast does not yet have a plan to execute such a bundle. Such a plan is forthcoming, though. This gives the United Kingdom and Ireland access to the upcoming Harry Potter series set to be released, along with the rest of the Warner lineup currently on Max.
Is Comcast Stock a Good Buy Right Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on CMCSA stock based on 12 Buys and eight Holds assigned in the past three months, as indicated by the graphic below. After a 6.83% loss in its share price over the past year, the average CMCSA price target of $49.53 per share implies 26.51% upside potential.
