Comcast: A $100 BIllion Stock At 6x P/E

Core Insights - Comcast's stock has declined over 50% from its peak, currently trading at approximately $28 per share, with a valuation of 6.5x forward earnings and a dividend yield nearing 5%, indicating investor concerns about a prolonged downturn [2][4]. Financial Performance - Comcast reported a loss of 104,000 broadband customers in the latest quarter, marking its fourth consecutive quarter of losses. Adjusted EPS was $1.12, slightly exceeding expectations but flat year-over-year, while total revenue declined by 2.7% to $31.2 billion [5]. - The Parks division achieved 18% year-over-year revenue growth to $2.72 billion in Q3 2025, driven by record domestic attendance and increased per-cap spending [9]. Market Dynamics - The broadband market has sharply decelerated post-pandemic, with ongoing cord-cutting trends diminishing cable TV subscriber counts. Comcast faces intensified competition from wireless companies offering fixed wireless broadband services [4]. - Domestic broadband net losses have shown improvement, with losses of -199,000 in Q1 2025, -226,000 in Q2, and -104,000 in Q3, indicating a reduction in competitive pressure [7]. Strategic Initiatives - Comcast is revamping its rate plans by eliminating hidden fees and investing in AI-driven support tools to enhance customer experience and reduce churn [10]. - The company plans to spin off its traditional cable television networks into a new entity, Versant Media Group, allowing it to focus on faster-growing segments like streaming and theme parks [11]. Operational Developments - Comcast's wireless operations attracted 414,000 net domestic subscribers in Q3 2025, with Xfinity Mobile now boasting 8.9 million lines, enhancing average revenue per account and reducing churn [6]. - A resurgence in ARPU growth, which increased by 2% year-over-year excluding one-offs, could alleviate saturation concerns and support high-margin revenue growth [8].