So yesterday, we heard that communications giant Comcast (CMCSA) was bracing for a slew of cuts in the Connectivity and Platforms segment. But now, we have word that Comcast is looking to ramp up its networking, prepared to apparently do more with less. And these developments are proving a welcome help to Comcast, as shares notched up fractionally in Tuesday afternoon’s trading.
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First came word that Comcast was getting together with Ciena (CIEN) to bring out Ciena’s own 5131 Coherent Access Platform (CAP) system. The move will allow Comcast to be able to spread its fiber deployments over a wider area, effectively increasing the reach of current fiber deployments by over 100 kilometers, or about 62 miles for those who do not speak metric.
Comcast Connectivity and Platforms’ Executive Vice President and Chief Network Officer Elad Nafshi noted, “We continue to expand our footprint so we can deliver next generation connectivity to as many communities as possible. Ciena’s coherent routing technology is the newest tool to help us pursue this goal as efficiently as possible. This platform can be useful in supporting our Rural Broadband and BEAD initiatives that are critical to improving digital opportunity across America.”
Quantum Push
Meanwhile, Comcast also got together with D-Wave Quantum (QBTS) and Classiq to create a “quantum lab,” which will seek to put quantum computing tools together to “improve broadband network management.” The demand for connectivity has not gone down, and seems like it only goes up. That means a clear need for better traffic optimization and other tools, so Comcast is looking to get these tools in play.
The project is already bearing fruit, reports note, with Comcast reporting that it was the first to bring out DOCSIS 4.0 for “…multi-gigabit symmetrical speeds over existing infrastructure….” It was also the first to roll out “…low-latency DOCSIS to cut lag in gaming and video conferencing….” This could be helpful for Comcast going forward, especially considering the sheer number of competitors in the field now.
Is Comcast Stock a Good Buy Right Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on CMCSA stock based on eight Buys, nine Holds and one Sell assigned in the past three months, as indicated by the graphic below. After a 24.48% loss in its share price over the past year, the average CMCSA price target of $40.38 per share implies 27.5% upside potential.
