What Happened:

Shares of telecommunications and media company Comcast (NASDAQ:CMCSA) fell 6.5% in the morning session after the company reported first-quarter results with revenue slightly ahead and adjusted EBITDA slightly below. The all-important volume metric of domestic broadband subscribers was in line with expectations, though it declined year on year. Domestic Residential Connectivity & Platform Customers lost 55k broadband subscribers vs. expectations of a 46k loss. Domestic Wireless added 289k lines, also below expectations of 306 adds, and Video net loss of 487k was better vs. expectations of a 548k loss. Zooming out, we think this was a mixed quarter. Investors were likely expecting more.

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What is the market telling us:

Comcast's shares are not very volatile than the market average and over the last year have had only 3 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

Comcast is down 13.7% since the beginning of the year, and at $37.73 per share it is trading 19.9% below its 52-week high of $47.12 from August 2023. Investors who bought $1,000 worth of Comcast's shares 5 years ago would now be looking at an investment worth $878.06.

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