What’s Boosting Comcast’s Stock Price?



Rise in Comcast’s stock price

On September 6, 2016, Comcast’s (CMCSA) stock price closed at $66.34. The company’s stock has risen by 16.9% YTD (year-to-date). Media company Charter Communications (CHTR) has also seen its stock price rise by 20.8%.

However, Twenty-First Century Fox (FOXA) and the Walt Disney Company (DIS) have seen their stock prices fall by 10.5% and 11.8%, respectively, on a YTD basis.

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Factors driving stock price

Comcast’s fiscal 2Q16 earnings also exceeded consensus Wall Street estimates. It declared EPS (earnings per share) of $0.83, which exceeded the Wall Street analyst estimate of $0.81.

Comcast’s Triple Play business is doing exceedingly well. Comcast’s Cable Communications business had revenues of $12.4 billion in fiscal 2Q16, which is 6% higher YoY (year-over-year). Its revenue growth was primarily driven by its High-Speed Internet, Video, and Business Services segments.

Series snapshot

In this series, we’ll take a closer look at Comcast’s X1 set-top box and its business strategy regarding the licensing of its X1 platform. We’ll also look at how Comcast Cable’s smaller businesses including advertising and home security could potentially generate significant revenues for the company in the long run.

Meanwhile, market segmentation has become a key component of Comcast’s business strategy. We’ll explore how the company’s high-speed Internet business is standing up to the growing competition from Google (GOOG) Fiber.

But first, let’s see how analysts are rating Comcast.


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