Should You Invest in Comcast?

OVERVIEW

Comcast Corporation is a company based in the United States. The company offers telecommunication products like cable communication (ex: high-speed internet) under the Xfinity brand. The company also offers entertainment products under NBC, Universal Studios, DreamWorks, and many others. The company was founded in 1963.

Why You Should?

  1. Comcast is a great reopening play in an investor’s portfolio. The pandemic caused a reduction in demand for cable communication products by commercial customers as they had to shut down operations or shift to a work-from-home environment. However, once the pandemic is over, Comcast will see continued growth.
  2. Comcast is a safe investment option in this modern world. Despite the economic times, no one will cancel their internet service as they need to be connected with the world around them. This will help Comcast maintain stable sales and operations through rough economic times. This will also benefit investors in the company.
  3. Comcast offers a wide range of products and services for its customers. From internet packages under Xfinity to entertainment products under NBC, the company is well-known amongst American households and other customers around the world. This wide range of products will help the company gain new customers and go through rough times.
  4. A Biden administration will positively benefit the company. Biden wants to pass a massive stimulus bill that will allocate billions of dollars for internet accessibility. Comcast can take up contracts to increase internet accessibility to rural areas. This will positively benefit the company and they can expand their markets and will benefit investors.

Why You Should Not?

  1. The company faces tough competition from many other telecommunication and entertainment companies. Some of these companies include Charter Communications, Verizon, AT&T, Disney, Netflix, and many others. This competition might hurt the company and its investors.
  2. The COVID-19 pandemic has hurt the sales of products/services to commercial customers like office spaces and restaurants who have had to shut down these locations and move to a work-from-home environment. This caused a drop in demand as these customers lowered or canceled plans. This hurt the company and its investors.
  3. Though the Biden administration will offer some positive impacts, the company also faces some political issues. Under a Biden administration, Democrats might want to pass more regulations and bills in order to lower the costs or increase the quality of service. This might hurt company’s like Comcast as they will need to spend more money.

MY OPINION

I think that Comcast is a decent long-term investment due to its position as a good reopening play, positive impacts from a Biden administration, its position as a safe investment option, as well as its wide range of products and services. However, tough competition, negative impacts from the pandemic, and a possibly tough political environment might hurt the company and its investors.

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Aaditya Patel

Aaditya Patel

Aaditya Patel is a writer who publishes analysis on companies publicly traded on the NYSE. Follow him @the_investing787 on Instagram for summary posts.