Why Wall Street is Dumping Comcast: The Legacy Media Trap

Comcast (CMCSA) just got slapped with a Zacks “Strong Sell” rating, and honestly? The reasons are hard to argue with.

The Math Doesn’t Work Anymore

Here’s the brutal truth: 65% of Comcast’s revenue comes from broadband, and that business is basically dead. They lost 257,000 video subscribers in Q3 alone. Meanwhile, analysts expect EPS to go negative in 2026, with revenue limping along at just 2.52% growth. That’s not a business—that’s a slow-motion decline.

Comcast is Caught Between Three Guillotines

1. Broadband is saturated & under siege T-Mobile and Verizon are muscling in, but the real threat is Starlink. Elon’s already got 7,000 satellites up there with plans to scale fast. Why pay Comcast’s premium when you can get satellite internet cheaper?

2. The cable TV exodus is irreversible Older folks still watch NBC. Younger people? They’re on YouTube TV, podcasts, and Spotify. The Joe Rogan Experience pulls 15+ million views monthly—more reach than most cable networks. The subscription model won in the market, and Comcast is on the wrong side of it.

3. The stock is already breaking down CMCSA dropped 45% over 5 years while the market rallied. Now it’s forming a daily bear flag pattern. Technical weakness + fundamental weakness = not a combo you want to own.

Bottom Line

Comcast isn’t going bankrupt tomorrow, but it’s trapped in a shrinking market with better-funded competitors and no clear growth catalyst. The broadband business won’t save it. The media business is hemorrhaging subscribers. This isn’t a value trap—it’s a value destruction machine disguised as a legacy blue chip.