9. Comcast Corporation (NASDAQ:CMCSA)
Share Price Upside: 21%
Number of Hedge Fund Investors In Q2 2024: 61
Comcast Corporation (NASDAQ:CMCSA) is one of the biggest internet and media providers in America. Its size and scale are a double edge sword for the firm. While it allows Comcast Corporation (NASDAQ:CMCSA) to enjoy a sizeable market share that it can milk for more revenue especially as household internet use rises, new broadband technologies such as fixed wireless provide consumers with more convenient products. This has the potential to eat Comcast Corporation (NASDAQ:CMCSA)’s market share, and even if it manages to keep its share, it will struggle to add new subscribers to its brand. Similarly, Comcast Corporation (NASDAQ:CMCSA)’s feature films business faces stiff competition from digital streaming companies, and while the firm operates its own streaming service called Peacock, it is a late mover in the market which means that the service has been unable to establish a dominant position. Key drivers for Comcast Corporation (NASDAQ:CMCSA)’s hypothesis are its net subscriber additions, subscriber retention, overseas revenue growth through parks, its average revenue per user (ARPU), and the performance of its streaming service.
Comcast Corporation (NASDAQ:CMCSA)’s management shared key details of a deal that could drive customers to its streaming service 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.”
