Comcast (CMCSA) plunged the most it has in five years, as it performed below analysts expectations in both subscribers for the Internet and phone. For the third quarter, Comcast grew its phone customers by 523,000, and its high-speed Internet users by 450,000.
Analysts say the slowing sales are directly connected to the housing market problems. Sanford C. Bernstein & Co. analyst Craig Moffett said, "There's no question that housing is having an impact on the sector."
For the third quarter, net income declined by 54 percent, to finish at $560 million, or 18 cents a share. Overall the share price dropped by 25 percent for the year.
Sales increased for the cable giant by 21 percent, rising to $7.78 billion.
In spite of the slowing growth and numbers, Comcast CEO Brian Roberts said, "We are realistic about some of the business challenges but nowhere do I see a more fundamentally strong and growing company in the telecom entertainment sector."
The company asserts its overall sales will still rise by a minimum of 11 percent in 2007.
With the growing competition and economic concerns, it's hard to see Comcast performing like it has in the past. Still, we'll see them grow, though it'll be slower than they're used to.
Some analysts and investors think it's a good time to buy the company.
I read about how this company has been sabotaging the Net Neutrality concept by restricting P2P traffic, so I will expect the stocks to plunge furthermore as many of its subscribers cancel their services and the company is engulfed in more negative publicity over this issue that is one of the lifelines of the internet and e-commerce.
Posted by: Comcast plunging stocks | October 27, 2007 5:54 AM | Permalink to Comment