Comcast’s Fourth-Quarter Results Won’t Turn Heads, but the Stock Remains Undervalued

Comcast’s fourth-quarter results won’t change the negative narrative around the firm. Broadband customer growth remains anemic, which isn’t a surprise. Peacock took a step forward with customers, adding 5 million paying accounts over the last three months of 2022, taking the total to 20 million. But Peacock losses hit nearly $1 billion during the quarter and $2.5 billion for the year, crushing margins at NBC Universal. We still believe that Comcast is well positioned to limit broadband share losses to competitors in the coming years while enjoying solid pricing power. NBCU is more challenged, but we like the effort to expand the theme park business to build around and support key content franchises. Our fair value estimate remains $60, and we believe the stock is significantly undervalued.