All these positives from Comcast’s report did little to buoy the stock, and shares of Comcast sank 4% at the market open Thursday, even as the broader market was higher across the board. The decline only added to Comcast stock’s pain which was sitting at 17-month lows.
Comcast isn’t performing badly by any means, but in this competitive media space, okay isn’t good enough. The telecom giant continues to see persistent cord cutting, broadband growth shrinking, and streaming delivering just the minimum. Comcast doesn’t stand out among the competition, and in this environment companies need to be doing whatever they can to stand out from the rest.
Roberts touted Peacock’s “unique” strategy in the streaming wars with two revenue streams and full integration with its linear business. He called it the “right” strategy. But does anyone really know what the right streaming strategy is? to expand their reach in the connected TV space. The two companies will launch a streaming platform on a variety of branded 4K streaming devices and smart TVs to directly compete with the likes of Roku, Apple TV and Amazon Fire TV.
Comcast investors aren’t buying what Roberts is selling. The company is dealing with a post-pandemic-prove-yourself period. The Covid broadband pull forward effect has many worried that the subscriber deceleration in that business could see prolonged pain. With Peacock continuing to be a money-losing business, and Comcast’s profitable broadband business’ reality of slowing growth, what will boost the stock and bring it back to life? Investors might find it increasingly difficult to stand by Comcast for much longer.
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Source: Cointelegraph - 🏆 562. / 51 Read more »