Comcast Corporation (NASDAQ:CMCSA) shares posted a modest gain on Thursday, rising 0.25% to close at $23.79, as investor enthusiasm over the planned spin-off of NBCUniversal and Sky continues to be tempered by persistent broadband subscriber losses. Trading volume of 42.1 million shares exceeded the 65-day average of 34.3 million, according to data from The Wall Street Journal.
The stock has risen only 2.7% since closing at $23.17 on June 26, despite the announcement of the separation plan. Since the news broke, nearly 289.8 million shares have changed hands, but the equity value added—approximately $2.2 billion—remains modest given the scale of the transaction. The stock is still down 12.2% from its intraday high of $27.10 on June 29 and sits just 13.9% above its 52-week low.
On a day when the broader market showed mixed results, Comcast underperformed its peers. The Dow Jones Industrial Average hit a new high, rising 1.14%, while the S&P 500 was little changed and the Nasdaq Composite fell 0.80%, weighed down by weakness in semiconductor stocks. The WSJ Media/Entertainment group surged 2.90%, far outpacing Comcast's meager advance.
The planned split, announced on June 29, will create two publicly traded companies: one focused on cable, wireless, and business services, and the other housing NBC, Peacock, Universal studios, theme parks, and Sky. Mike Cavanagh is expected to lead NBCUniversal, while former CFO Michael Angelakis will run Comcast. The company plans to retain up to 19.9% of NBCUniversal for up to one year. CEO Brian Roberts described the move as opening "a multitude of new opportunities."
Despite management's efforts to downplay deal speculation, analysts expect NBCUniversal to become an acquisition target. "NBCU will become M&A target eventually," said Ross Benes, senior analyst at eMarketer, while Paolo Pescatore of PP Foresight noted that "connectivity and media are no longer naturally moving at the same speed."
Analyst sentiment remains cautious. Of 18 analysts tracked by Google Finance over the past three months, only six rate the stock a buy, 11 have holds, and one recommends selling. Goldman Sachs' Michael Ng maintained a hold rating with a $26 price target on July 2. Deutsche Bank's Bryan Kraft and Citi's Michael Rollins each set targets at $32 on June 30. The average 12-month price target stands at $32.27.
Comcast's first-quarter results underscore the challenges. Domestic broadband residential subscribers fell by 65,000, an improvement from the 183,000 loss in the same period last year, but revenue from that segment declined 5.1% to $6.338 billion. Domestic wireless lines added 435,000, up from 323,000 a year earlier, with service revenue rising 15.0% to $977 million. However, the broadband weakness remains a drag. Comcast's connectivity chief, Steve Croney, admitted in April that "we were not competitive enough" but expressed optimism as free wireless lines convert to paid service later this year.
Barron's estimated NBCUniversal's value at $50 billion, while Comcast's current market capitalization is about $85 billion with $80 billion in debt. The stock trades at roughly seven times expected 2026 profits and five times EBITDA. The market's muted reaction since the split announcement suggests investors are discounting the media side to account for debt, execution risks, and ongoing broadband pressure.
With U.S. markets closed on July 3 for Independence Day, trading resumes on July 5. The split leaves Comcast shareholders with two distinct bets: whether NBCUniversal will thrive as a standalone entity, and whether the remaining cable business can stem broadband declines while capitalizing on wireless growth.
