Paying the cost of internet service isn’t always easy these days. And with linear television having less and less value for most viewers, how does a service like Comcast (NASDAQ:CMCSA) keep up? In Comcast’s case, it launches a new brand. Comcast shareholders, meanwhile, weren’t blown away and instead quietly filed out, sending shares down fractionally in the closing minutes of Wednesday’s trading.
Dubbed Comcast NOW, Comcast is looking to provide low-cost options for internet, mobile, and even television services for those who don’t want to pay standard cable prices. Immediately, Comcast will enter a market that’s becoming increasingly packed with competitors, particularly in terms of fixed wireless offerings like those most of the main three mobile phone companies are offering.
NOW Mobile will offer customers a $25 per line service for mobile phone service, which includes unlimited 5G data with access to Xfinity hotspots. The NOW TV service, meanwhile, offers streaming access to over 40 networks, including Peacock Premium, for $20 per month. Additionally, NOW WiFi Pass provides 30 days of access to the Xfinity hotspot range for $20 per month.
But Can It Succeed?
Early word suggests that consumer reaction is somewhat mixed here. The NOW WiFi Pass certainly seems tempting, but its dependence on the Xfinity hotspot network means that there may not always be a location near you that has service available. However, the NOW Mobile plan turns to the Verizon network, which would likely have a much broader availability. Still, for those who can get access and live in the right areas, there’s little doubt that this is a cost-effective plan in an era when a lot of people are looking to cut costs by any means available.
Is Comcast a Good Buy Right Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on CMCSA stock based on nine Buys and eight Holds assigned in the past three months, as indicated by the graphic below. After a 4.62% rally in its share price over the past year, the average CMCSA price target of $50.80 per share implies 30.32% upside potential.
