Please ensure Javascript is enabled for purposes of website accessibility

Why Comcast Stock Is Soaring Today

By Anders Bylund - Updated Jan 28, 2021 at 4:01PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The gigantic cable TV broadcaster and content studio surprised the Street across the board in this morning's fourth-quarter report.

What happened

Shares of media giant Comcast (CMCSA 0.94%) were 8% higher at 3 p.m. EST on Thursday, following the release of a solid fourth-quarter earnings report in the early morning.

So what

Total revenue fell 2.4% year over year to $27.7 billion. Rising high-speed internet sales fell short of balancing out cord-cutting trends in the voice and video segments. The NBCUniversal content studio also saw sales fall 18% due to weak interest in every content category and a 63% drop in theme park revenue. Adjusted earnings fell 29% to $0.56 per share.

The analyst consensus had called for earnings near $0.48 per share on sales in the neighborhood of $26.8 billion.

A white charting arrow trends upward.

Image source: Getty Images.

Now what

The Peacock video-streaming channel reported 33 million total sign-ups, though Comcast left unsaid how many of these are paying for the service. Peacock offers a 7-day free trial period, and an ad-supported service with limited content at no cost to the viewer.

Management expects better financial results in 2021 as vaccines start to roll back the business restrictions on movie theaters and theme parks, among other suffering segments. To underscore its optimism, Comcast's board of directors boosted the dividend by 9%. The annual payout now stands at an even $1 per share, which works out to a yield of 1.9%.

Comcast's stock is trading near its all-time highs today, rivaled only by an all-time high at the very end of 2020. I hear some of my fellow Fools whispering about the upcoming rebound in Comcast's actual business. At the same time, I'm worried that the financial damage of the pandemic hasn't been fully incorporated in these surging share prices, and I would love to know more about Peacock's paid versus free sign-ups.

I'm more than happy to watch Comcast from the sidelines until further notice.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Comcast Corporation Stock Quote
Comcast Corporation
$41.87 (0.94%) $0.39

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/17/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.