Customers Hate Comcast. Why Don't Investors?

Will poor customer service cut into profits?

Jul 23, 2014 at 7:01PM

On Wednesday's MarketFoolery, host Chris Hill and Bill Barker, an analyst from Motley Fool Funds, look at Comcast (NASDAQ:CMCSA) and how profits continue to go up as customer service remains low.

Second-quarter profits rose 15%, even though Comcast lost 144,000 customers. That was less than it saw a year ago, though, and Bill thinks Comcast can afford to lost customers, since it's well entrenched and still benefits if people shift their viewing habits toward online TV. 

Comcast often finds itself on lists of companies with the worst customer service, and Bill says he's had similar experiences to the customer whose attempts to cancel his Comcast service recently went viral. But Bill argues that it doesn't matter, because everyone already knows about Comcast's poor customer service and many customers won't abandon its services regardless, though he does think Comcast could enjoy greater profits if it did shore up its customer service. 

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Bill Barker owns shares of Apple. Chris Hill has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Apple. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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