Comcast’s (NASDAQ: CMCSA) ongoing rally gathered steam amid reports of the company pursuing the acquisition of streaming service Xumo. The stock traded higher during Monday’s session, a week after media reports said the management was in advanced talks to acquire the video streaming app.
While the market is generally bullish about the expansion program that focuses on buyouts, there is skepticism over the monetization prospects of such deals. After closing a series of acquisitions during the early part of the year, the company last quarter recorded a decline in the contributions from Sky, the UK-based broadcaster that joined the Comcast fold last year.
Meanwhile, a section of market watchers, like Benchmark, see merit in that strategy. According to Benchmark, acquiring Xumo would add to the prospects of the company’s upcoming streaming service Peacock, which will be rolled out in April next year. The brokerage also reaffirmed its buy rating on the stock. Xumo, owned by Panasonic and Meredith, has more than five million active users.
The management is expected to provide updates on the Peacock launch at next month’s investor meet. The new service will be run by the company’s subsidiary NBCUniversal. The launch is termed as a strategic move by Comcast to make inroads into the lucrative streaming space, which is the new fad among telecommunication companies.
Peacock in Focus
In the third quarter, both earnings and revenues increased from last year and exceeded expectations. The event was closely followed by investors as it was the first quarterly report after Comcast announced Peacock.
After climbing to a record high a few months ago, Comcast’s stock retreated and reached the pre-boom levels earlier this month. However, the shares regained strength since then and closed the last trading session slightly above $45.
Biogen (NASDAQ: BIIB) reported third-quarter 2021 financial results before the regular market hours on Wednesday. The company reported Q3 revenue of $2.78 billion, down 18% year-over-year and higher than the
Verizon (NYSE: VZ) reported Third-quarter 2021 financial results before the regular trading hours on Wednesday. The telecommunications giant reported Q3 revenue of $32.9 billion, up 4.3% year-over-year and above the
Philip Morris International Inc. (NYSE: PM) reported Third-quarter 2021 earnings results today. Net revenues increased 9% year-over-year to $8.1 billion. The reported net income amounted to $2.42 billion compared to