Comcast (CMCSA) Stock Slides on Netflix Deal

Comcast (CMCSA) announced a partnership with Netflix (NFLX) today and the stock is declining.
By Rachel Aldrich ,

NEW YORK (TheStreet) -- Comcast  (CMCSA) - Get Report  stock is falling 0.74% to $64.80 today after the company released a statement with Netflix (NFLX) saying the video streaming service would be incorporated into Comcast's X1 platform.

Customers will be able to access Netflix's web-streaming services from Comcast cable boxes.

Recode first reported confirmation of the deal this afternoon.

Comcast, a Philadelphia-based broadcast giant, hopes the deal will move the company closer to its goal of delivering customers all entertainment options, including traditional cable and online-streaming through their subscriptions.

Morgan Stanley reported recently that Comcast could benefit from the deal by getting a larger "bounty" from Netflix for additional subscribers, according to Recode.

Following the deal Comcast will also be on better footing against rivals like Roku, Verizon (VZ) and Dish (DISH), all of whom already have Netflix apps for customers. Smart televisions also have Netflix and other streaming apps available on their interfaces.

Although Morgan Stanley acknowledged that Comcast's own pay-per-view services might be impacted by the deal, it should not be significant.

The service will be available later this year, Comcast and Netflix said in a statement.

(Comcast is held in Jim Cramer's charitable trust Action Alerts PLUS. See all of his holdings with a free trial.)

Separately, TheStreet Ratings rated this stock as a "buy" with a ratings score of A+.

The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, increase in net income and reasonable valuation levels. TheStreet Ratings feels its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

You can view the full analysis from the report here: CMCSA

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

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