3 Media Stocks in Focus: Time Warner to Ditch the Set-Top, Stifel Boosts Disney, Comcast Eyes a New Tower
Time Warner Cable (NYSE:TWC): Chief Operating Officer Robert Marcus, who will become the cable company’s CEO next year, said at a conference that Time Warner Cable should, within about a year, be able to let over-the-top devices (Xbox, Roku) replace set-top boxes. ”Over the course of the next year or so, we will be knocking down some of the current obstacles that are in the way of not just having the TWC TV experience be a complementary service to the delivery of video via the leased set-top box but also a replacement service so that customers can have nothing but a Roku device or an Xbox and get their video experience,” he said.
Disney (NYSE:DIS): Stifel raised its estimates on Disney based on an acceleration in the company’s share buyback plan and better-than-expected sales of the company’s Infinity video game. Analyst Drew Crum is bullish because of CFO Jay Rasulo’s targeted of $6 billion-$8 billion in share repurchases for next year — and due to Infinity’s contribution to Disney’s interactive business — the game posted retail sales of $37 million in two weeks. The firm keeps a Buy rating on the stock.
Comcast (NASDAQ:CMCSA): Just five years after putting its headquarters in center city Philadelphia, the company is already exploring the possibility of putting one or more new towers nearby to help consolidate thousands of workers. Sources added that the company is rapidly running out of space at the current Comcast Center. Comcast’s concept, according to the source, is for a “vertical campus” with several towers within a relatively small footprint of center city.