Comcast (CMCSA) Offering Possible 6.61% Return Over the Next 27 Calendar Days

Comcast’s most recent trend suggests a bullish bias. One trading opportunity on Comcast is a Bull Put Spread using a strike $42.50 short put and a strike $37.50 long put offers a potential 6.61% return on risk over the next 27 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $42.50 by expiration. The full premium credit of $0.31 would be kept by the premium seller. The risk of $4.69 would be incurred if the stock dropped below the $37.50 long put strike price.

The 5-day moving average is moving up which suggests that the short-term momentum for Comcast is bullish and the probability of a rise in share price is higher if the stock starts trending.

The 20-day moving average is moving up which suggests that the medium-term momentum for Comcast is bullish.

The RSI indicator is at 74.33 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here


LATEST NEWS for Comcast

Netflix Suffers Worst Rout Since 2016 on Drop in U.S. Users
Thu, 18 Jul 2019 20:12:35 +0000
(Bloomberg) — Netflix Inc. shocked investors by reporting a drop in U.S. customers and much slower growth overseas, raising fears that the streaming giant is losing momentum just as competitors prepare to pounce.The shares plunged 10% to $325.21 at the close in New York, the worst one-day drop in three years, after the company reported a loss of 130,000 customers in the U.S. Netflix blamed higher prices and a weak slate of TV shows. It signed up 2.8 million subscribers internationally in the period, roughly half what the company predicted.“Netflix has a difficult road ahead, with looming competition and the removal of popular content,” said EMarketer Inc. analyst Eric Haggstrom. But a stronger lineup of new shows in the current quarter could help attract former subscribers, he said.The quarter represents the biggest black eye for Netflix since 2011, when the company split its DVD-by-mail business from its streaming business. That move raised prices for its customers, and resulted in the loss of more than 800,000 subscribers in the U.S. The company had planned to call the DVD service Qwikster, but it backpedaled on the plan after investors and customers scoffed at the idea.Netflix said the miss is a one-time blip rather than a long-term problem. The second quarter has typically been its weakest time of year: The company missed its forecast during the period in three of the past four years.Netflix looks to add 7 million subscribers in the current quarter, thanks in part to the return of top shows “Stranger Things” and “Orange Is the New Black.”“Our position is excellent,” Chief Executive Officer Reed Hastings said during a videoconference call Wednesday. “We’re building amazing capacity for content. Our product has never been in better shape.”Several analysts agreed that the second-quarter disappointment should be only a temporary hiccup for Netflix. Investors should “aggressively buy the stock” on weakness, especially below $325 a share, Loop Capital said.Heavy SpendingFor now, the second-quarter shortfall is renewing investor concern about the company’s heavy program spending and low profitability. Netflix shelled out more than $3 billion on programming in the quarter and another $600 million to market its shows. The company spent $594 million more than it took in and will need to raise money to fund programming.Investors had been forgiving about the spending and the debt — so long as customers grew at record rates. But the loss of subscribers in the U.S. was the first since the Qwikster debacle, and it suggests Netflix may be running into price resistance or the limits of the addressable domestic market. The company has forecast it can reach as much as 90 million customers in the U.S., compared with 60.1 million currently.Overseas SlowdownInternational results flagged too, with the company missing its own forecast of 4.7 million new subscribers. Europe, Latin America and Asia have been the primary drivers of Netflix’s customer acquisition in recent years, and growth must be sustained if the company is to justify its high valuation.Netflix is introducing a cheaper, mobile-only package in India to attract customers in a big market with price-sensitive customers.Analysts expect the company to have a blockbuster second half because of a heavy release schedule that includes a new season of “The Crown” and movies by directors Martin Scorsese and Michael Bay. Even after the slowdown last quarter, Netflix still thinks it can have its best year of customer growth in 2019.But competition is coming. Walt Disney Co. and Apple Inc. plan to introduce streaming services this year, while offerings from Comcast Corp. and AT&T Inc. arrive in 2020. Those services may not steal users from Netflix, but they will make future growth harder, according to Michael Pachter, an analyst with Wedbush Securities.Just a Preview?“We saw a preview of next year with this quarter,” Pachter said in an interview with Bloomberg Television. “Next year, they’ll have a couple quarters where they’ll lose subscribers.”Another challenge: Competitors are taking back rights to programs that have been popular on Netflix, including “Friends” and “The Office,” to use for their own services. That will force Netflix to rely even more on its original productions.Those efforts have largely been successful. Its shows just earned 117 nominations for the 2019 Emmy awards. But reruns of old shows still constitute the majority of viewing.The slowdown in users overshadowed the company’s quarterly financial results. Earnings for the second quarter fell to 60 cents a share, but beat analysts’ estimates of 56 cents. Sales grew 26% to $4.92 billion, compared with projections of $4.93 billion.The stock had been up 35% for the year at the close of regular trading, nearly double the gain of the S&P 500. The decline spread to related stocks such as Roku Inc., which makes set-top boxes that deliver the streaming service. Its shares fell as much as 2.5%, but closed little changed.(Updates with closing prices)To contact the reporter on this story: Lucas Shaw in Los Angeles at lshaw31@bloomberg.netTo contact the editors responsible for this story: Nick Turner at nturner7@bloomberg.net, Rob GolumFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

Netflix stock slammed by subscriber miss, but analysts are unfazed
Thu, 18 Jul 2019 19:23:00 +0000
Netflix Inc.’s weaker-than-expected second-quarter subscriber numbers sent its stock sharply lower in premarket trade Thursday, but analysts were unfazed by the miss and said they’re sticking with their full-year forecasts.

The Movie Biz: Films worth (and one not worth) watching about landing on the moon
Thu, 18 Jul 2019 17:39:14 +0000
In 1902, the fabulous French fabulist and filmmaker Georges Méliés released “A Trip to the Moon,” a 14-minute short best known for its memorable shot of a moon rocket landing square in the eye of the Man in the Moon. Probably the most effective “serious” movie of the genre is 1995’s “Apollo 13.” Ron Howard and Tom Hanks shoot for the moon in this surprisingly gripping and supremely entertaining re-telling of the moon landing that wasn’t. In 1970, less than a year after Neil Armstrong and Buzz Aldrin left their footprints in the dust, Jim Lovell (Hanks) and his team (Kevin Bacon, Bill Paxton and Gary Sinise) hope to have their turn.

Netflix, Welcome to Ratings Hell
Thu, 18 Jul 2019 15:17:58 +0000
(Bloomberg Opinion) — The TV-network giants went through ratings hell. It’s time for Netflix’s own version of that. After the market closed on Wednesday, Netflix Inc. reported that it lost 126,000 U.S. streaming customers during the second quarter, which appears to be the first time it’s ever done so. Global membership growth was also well short of management’s own expectations, with 2.7 million net sign-ups versus an anticipated 5 million. The company blamed its uninspiring results on subscription price increases and a less-enticing mix of movies and TV series. While it signaled that “more typical growth” and better content is in store, shares of Netflix sold off 12%, erasing $17 billion from its market value. This marks a turning point in how investors view the future of Netflix vis-a-vis its biggest emerging threats, Walt Disney Co. and AT&T Inc. In recent years, the popularity of Netflix has been a chief reason for the accelerated drop in cable subscriptions and viewers tuning out traditional live TV. As investors were entranced by the video-streaming app’s rapid growth and awarded the company an absurdly rich valuation, companies such as Disney and Time Warner (now called WarnerMedia, a unit of AT&T) were punished by shareholders for their audience shrinkage.Those media giants’ audiences are still shrinking (see next chart), and their businesses still rely on TV commercials and cable fees to drive profit. But they have managed to change the narrative so that more attention is paid to their own streaming opportunities. Nov. 12 is the launch date for Disney+, which Disney plans to bundle with ESPN+ and Hulu for fans who want all three services. Shortly thereafter, AT&T’s WarnerMedia will introduce HBO Max, a souped-up version of the HBO app that will contain Turner network programs and Warner Bros. films. Given the relatively low price of Disney+ at $6.99 a month and the quality of Disney and HBO/Warner content, both products have the potential to lure a considerable number of streamers away from Netflix.(1)This means Netflix investors will become even more obsessed with its quarterly subscriber count. They’ll also want more real data as far as how many people are watching Netflix’s costly originals – much in the way investors have picked apart the traditional media companies’ Nielsen viewership ratings. By now you’ve heard that “Friends” is moving to AT&T’s HBO Max next year, and that Comcast Corp.’s NBCUniversal is reclaiming “The Office” in 2021. Those are the most-watched shows on Netflix, so their expiration dates create a sense of foreboding.As my colleague Shira Ovide alluded to Wednesday, Netflix may be drifting too far from what it made it so attractive in the first place: being a constant bazaar of binge-able video entertainment. By blaming its own content slate for last quarter’s weak showing, Netflix is saying that it’s not all that different from HBO, which is dependent on a select few hit programs and goes through lulls when there aren’t new episodes. I’ve written that Netflix has the benefit of already being the “base” streaming service for many people, but that could change if Netflix becomes less of a one-stop shop and other services seem to offer more bang for your buck. Disney+ launch day is just four months away. And the closer we get to D-Day, the more skittish Netflix shareholders will be. Cable-network operators know all too well what that’s like. (1) Apple TV+ is also coming later this year to challenge Netflix.To contact the author of this story: Tara Lachapelle at tlachapelle@bloomberg.netTo contact the editor responsible for this story: Beth Williams at bewilliams@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Tara Lachapelle is a Bloomberg Opinion columnist covering deals, Berkshire Hathaway Inc., media and telecommunications. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

Comcast (CMCSA) Reports Next Week: Wall Street Expects Earnings Growth
Thu, 18 Jul 2019 14:33:02 +0000
Comcast (CMCSA) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

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