Comcast is about to release earnings. Ponder this Bear Case Scenario and decide if risks are warranted:
The markets that Comcast serves are extremely mature and face challenges from new technologies. Growth potential is limited and uninspiring. Cord snipping continues.
Internet-based competition from content providers is relentless. The olde model of packaging unwanted channels with a few hot shows is breaking apart and why wouldn’t it. Comcast will need to spend hundreds of millions on new and exclusive content as well as spend on infrastructure. Tough prospects.
Comcast competes with telco’s for infrastructure. Telco’s are generally behind but catching up. Comcast is in danger is losing its dominant position against Telco’s.
In Comcast markets no one can match the mix and breadth of services. This usually create higher earnings per customer and more loyalty.
George Gutowski writes from a caveat emptor perspective.