For communications titan Comcast (CMCSA), the earnings news overshadowed just about everything else. Recent word about a whole new kind of internet service, and plans to spin off its cable networks, did little to halt the massive slide the earnings report represented. Shares were down over 12% in Thursday afternoon’s trading as a result.
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Internet lag is a problem for many people; just ask anyone who has ever had a video buffer or a game freeze mid-play. But Comcast may have a way to fix at least some of this with its new, ultra-low-lag internet service. The concept is built around an “open standard, low-latency tech” that brings lag down to “the blink of an eye.”
Comcast has been, according to a release from the company, testing the service with several user groups for the last year. The tests have proven to deliver in a big way, with results either meeting or exceeding expectations. Now, Comcast plans to bring its service out to a wider pool of users, bringing it to several major cities coming up. Those who live in merely minor cities or small towns, meanwhile, will apparently have to wait an undisclosed period of time.
The Spin-Off Networks
The fate of several of Comcast’s linear television networks has been up in the air for some time now, but we got a little more information on just what the future of those channels looks like. Comcast is calling it a “broadcast-plus-streaming strategy,” reflective of the mix of content involved.
Comcast revealed that 98% of the viewing of NBCU channels on Peacock, its streaming service, is driven by two key factors: Bravo and NBC proper. The remaining 2%, meanwhile, is everything else. Thus, the channels that are being spun off—channels like SyFy, the Golf Channel, and Oxygen—just “…weren’t integral to the emphasis we’ve put on Peacock and a streaming future for NBC broadcast in particular.”
Is Comcast Stock a Good Buy Right Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on CMCSA stock based on 14 Buys and eight Holds assigned in the past three months, as indicated by the graphic below. After a 27.54% loss in its share price over the past year, the average CMCSA price target of $48.95 per share implies 49.69% upside potential.
