Comcast Corporation (CMCSA) is by far the greatest provider of mass media and communication products and services in america and is known as the largest telecommunication company to extract largest revenue around the globe. Recently, Comcast has acquired NBC Universal, which has operations in broadcasting and theme parks. This recent acquisition makes comcast hq even bigger and added to its revenues. For investors what this means is far better dividends. The stock price though hasn’t always been a popular of the stock market and only recently has stared to pick up over the course of the past 3 years.
Analysts have cautiously remarked that previously Comcast Corp Stock, which trades on NASDAQ, was overvalued, which may be because the company is performing well on paper and being praised for the financial performance.
Comcast the giant – Anyone acquainted with Comcast CMCSA earnings is well aware that revenues and cash flows are in the huge amounts of dollars. Using the numbers that Comcast boasts, its not hard to see why. Comcast has 23.6 million video customers, 15.9 million high speed Internet customers, and 7.6 million phone customers. Additionally, Comcast has earned USD 948 million in 2009 in revenues from franchise fees. Phone services contributed USD 3.3 billion in that same year as a result of a rise in customer base.
Mouth-watering and Appetizing Prospects for Investors. Comcast’s huge customer base implies that they can tap into their already existing pool of customers. For instance, if one customer is availing only TV services, the company can get in touch with him by providing a high-speed internet connection at a much lower cost, or offer them a bundle for Internet, phone and TV services. The United States housing economy is additionally a place of interest for Comcast in the sense that as increasing numbers of new homes are being built, new clients will need Internet and TV and phone services.
Now, we can easily notice that the result this potential will have on Comcast Corp stock analysis is that it may send the purchase price upwards. However, we must remain realistic because the housing market can also go busted because it did throughout the sub-prime mortgage crisis.
Investor and Analyst Sentiments. Investors have seen very healthy returns as CMCSA stock price has gone up 35% on the summer of 2013. An analyst at Forbes speculates that CMCSA has not been a great stock, which is primarily because of their shares being overvalued through the 1990s to 2008. He shows that for any good to come out of long term making an investment in stocks, identification in the right company to buy as well as a fair or reasonable price for the stock is the right mix for better rewards.
He further continues on to state that things turned for the better once the company’s strong business along with fair pricing with their shares converged together. After 2008, operating earnings have started compounded at 21.5%. All of this generated long term rewards and returns for shareholders. Despite this, the marketplace (NASDAQ) was on a downward trend and Comcasts’ stock became undervalued, which caused it to be cost effective for newer investors.
In his own words; “www.corporateofficeheadquarter.com is first of all an above-average growth stock that now pays a dividend. Above average capital appreciation along with a rapidly increasing dividend will be in the cards for shareholders in the future. Leading analysts seem to agree, since the consensus of 26 analysts reporting to S&P Capital IQ forecast five years earnings growth of 18% per annum.”
The analyst concludes by stating that Comcasts’ stock cost is in line featuring its intrinsic value since their current Price-to-Equity Ratio is almost the same as their expected long term growth rate for earnings.
Comcast Strategies and Competitive Environment – The concept of selling 2 or 3 products together as being a bundle has been a long technique for most businesses. At its simplest, you can think of this as get one acquire one free. In the case of COMCAST CORP – (CMCSA) they can provide their existing customers along with other services, such as Internet and phone services along with TV. Their bundle for all three services is called “Triple Play” and it also only costs an affordable USD 99 monthly. Consumers are relaxed with this particular because they only have one company to deal with, one bill to pay for and one place to go to for resolution of complaints.
However, Comcast’s phone business has been facing competition from US Cellular Service Providers as people are now shifting more towards cell phone services from the traditional land line. The US cable television market is wptadp shifting more towards a digital system and increased competition from satellite TV providers like Direct TV and Dish Network can also be biting into comcast ceo email. Legislation by Congress is suggesting that every ISPs should charge the identical price for many web content and this is a threat to Comcast because it charges a fee for premium services to multitude of its customers.