7. Comcast Corporation (NASDAQ:CMCSA)
Number of Hedge Fund Investors In Q2 2024: 61
Mutual Fund Overweight Percentage: 0.13%
Comcast Corporation (NASDAQ:CMCSA) is a well known American broadcasting and internet company. It has been in business since 1963, and its continued presence in the market has enabled the firm to amass a sizeable market position and cash resources of $6 billion. Consequently, Comcast Corporation (NASDAQ:CMCSA)’s shares have an element of defensiveness in them as it can be assured of sizeable revenues even during a downturn. However, the modern day has seen growth in internet streaming, fixed wireless internet, and satellite internet services. These are high growth businesses and ones in which Comcast Corporation (NASDAQ:CMCSA) either has been a late entrant or has no presence at all. Consequently, the key to its hypothesis is the firm’s ability to keep its user base intact and ensure growth in markets like streaming. Any growth in these areas will create tailwinds and versa.
Comcast Corporation (NASDAQ:CMCSA) operates in the streaming industry through its Peacock service. One way it can gain share is through mega deals (for share price tailwinds), and here’s what management shared during the Q2 2024 earnings call:
“Our expectation is that soon an 11-year rights deal between ourselves and the NBA will be announced. We don’t believe that the resolution of matching rights will affect the package that we expect to be awarded. This package, which begins with the 2025-2026 season includes: 100 NBA games each regular season across NBC and Peacock, which is more than any other media partner and more regular season games than each existing partner has under the current rights deal; for playoffs, we will have first and second round games each year, exclusively on our national platforms and six NBA conference final series over the course of the term of the deal, which is more playoff games on average each year, than any other media partner; and exclusively for Peacock will be approximately 50 national regular season and post-season games, including National Monday Night games and doubleheaders.
Additional elements of the NBA package include the annual NBA All-Star Game and All-Star Saturday Night each season, the season opening NBA tip-off doubleheader each season, a special doubleheader on the MLK holiday, and Select NBA games in every NBA All-Star game on Telemundo. Beyond the NBA itself, we’re excited that our package includes WNBA, where starting in the spring of 2026, we’ll have more than 50 WNBA regular season and first round playoff games each season across Peacock, NBC and USA, and we’ll also have games in seven WNBA Conference semifinals and three WNBA Final series; for USA Basketball, we’ll have the rights to USA men’s and women’s games leading up to the Olympics and FIBA World Cup; Sky Sports will air all of NBCUniversal’s NBA and WNBA games in its markets; and finally, Xfinity will be the NBA and WNBA’s marketing partner in the video category.”
