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Comcast Reaches Agreement With Roku, Stock Keeps Sliding

The security is struggling with its 30-day moving average today

Digital Content Manager
Sep 21, 2020 at 10:50 AM
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The shares of streaming service newcomer and media heavyweight Comcast Corporation (NASDAQ:CMCSA) are down 3.1% at $43.84, likely due to the broader-market selloff. This dip comes despite a Friday evening announcement that its NBCUniversal business reached an agreement with Roku (ROKU) that will make the latter's Peacock service available to stream on Roku in the coming weeks. This follows a public argument between the two companies after Roku threatened to pull dozens of NBCUniversal's apps, amid negotiations over Peacock. 

Now, CMCSA is headed toward its third daily loss. The shares just attempted another run at their pre-pandemic all-time high of $47.74 on Jan. 17, but ran out of gas at the $47.50 mark. The stock is struggling at its formerly supportive 30-day moving average, today, though its 60-day moving average -- which captured its late-June pullback -- is still directly below. 

Analysts are still supportive of Comcast stock for the most part, with 13 in coverage calling it a "buy" or better, compared to six that say "hold." Plus, the 12-month consensus price target of $49.32 is a 12% premium to current levels, and represents untouched territory for CMCSA on the charts. 

Short sellers have been hitting the exits lately, as well. Short interest dropped 12.5% in the last two reporting periods. However, it would still take nearly a week to buy back the 76.44 million shares sold short, at the equity's average daily pace of trading. 

 

 
 

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