DreamWorks Animation, famous for its hit animated movies, is part of the Comcast (NYSE:CMCSA) family due to Comcast's ownership of NBCUniversal. DreamWorks captivated audiences with groundbreaking films like Shrek and Kung Fu Panda.
Although you can't buy the stock directly, you can still invest in DreamWorks indirectly through Comcast, which not only owns DreamWorks but also has a multitude of other investments in the media, streaming, and telecom spaces.
How to invest
How to invest in DreamWorks stock via Comcast
There are a few steps investors must take to buy any stock. Below is an example of an order being placed via Fidelity, followed by a step-by-step guide on how to invest in a stock such as DreamWorks once it IPOs.
Step 1: Open a brokerage account
To buy DreamWorks stock, you need to open a brokerage account. There are many online brokers out there waiting for your business, like E*TRADE, TD Ameritrade, and Robinhood (HOOD 3.29%), to name a few. Here's what to look for when choosing a broker:
Know the trading commissions. Traditionally, stock brokers would make their money from commissions on every trade, but technology has completely changed the landscape. Due to the sheer volume of trades possible these days, many brokers will offer low- or no-commission trades.
Know how much you need for your deposit. Some brokers have eliminated their minimum deposit requirement, making it easier to start investing. Some brokers will have deposit requirements that will fit the majority of wallets in America.
Is the platform usable? Do you understand how to use it, or does it make about as much sense to you as cutting-edge quantum physics theories? Many platforms are incredibly easy to use, so novice traders can better understand them.
What else do they offer? Access to educational resources, stock analysis tools, and customer support can be invaluable, especially for new investors, novices, and people who just want to improve what they are doing. Many brokerages will also incorporate community forums, where users can seek help and get a feel for market sentiment about certain stocks.
Brokerage Account
Step 2: Figure out a budget
Consider your current financial situation, time frame, and risk tolerance when setting your budget for investing in DreamWorks. Here are some tips:
What's your real budget? How much are you willing to invest without having to sell too early because you need the money? Remember, you need to have a maximum you can lose and be comfortable with price swings and volatility along the way. Make sure your investments won't negatively affect other aspects of your life if they underperform.
Diversify your investments. Don't put all your eggs in one basket. Invest in a mix of industries and stocks with different risk profiles. Diversify your portfolio across different industries to mitigate a downturn in any of them.
Determine your investment horizon and your risk tolerance. Are you investing for long-term growth or short-term gains? Long-term investors may focus more on the company's growth potential than daily price fluctuations.
Are you looking for stable growth and a dollar-cost averaging strategy in which you put in a little money each month with the idea that the market will even out over time? Or are you pursuing a lump sum to see how far Comcast stock will take you in a few years?
Step 3: Do your research
Knowledge is power when it comes to investing. Here are some steps to take:
Look at things from a macro perspective. Comcast is in the telecommunications industry and has been a pioneer of cable and internet broadband, but for how long? Comcast is fully diversified, with holdings that span the entire NBCUniversal portfolio.
However, revolutionary and disruptive technology, such as satellite internet, could have an adverse effect. SpaceX has shown us that lightning-fast satellite internet is likely the wave of the future, given the success of Starlink.
Understand DreamWorks and Comcast's revenue model. DreamWorks generates income through content creation, distribution, and licensing. Comcast's entire entertainment portfolio works very similarly. Know how these streams contribute to its overall financial health and how different revenue streams could give it an advantage.
Assess market performance: DreamWorks tends to perform well when consumer engagement is high. Economic growth, rising digital content consumption, and expanding global reach can all boost performance, but there are limits. For example, several companies in the digital content space did extremely well during the COVID-19 pandemic but lost traction after the worst passed.
Identify potential risks. Be aware of challenges, such as market competition, regulatory changes, and shifts in consumer preferences, which might affect DreamWorks' business. Then, adjust your risk accordingly.
Analyze financial health. Always look under the hood of a car before you drive off in it and under the hood of a stock before you invest in it. A stock's engine is its financial statements, and due to Securities and Exchange Commission (SEC) regulations, there are plenty of them.
For a publicly traded company like Comcast, financial statements -- such as the income statement, balance sheet, and cash flow statement -- are available in quarterly and annual reports filed with the SEC.
These reports can be found in the company's investor relations section of its website. They typically include the statement of shareholders' equity and notes to financial statements for comprehensive analyses.
Step 4: Place an order
Once you've opened a brokerage account, set a budget, and done your research, it's time to place an order. You'll need to decide what type of order you want to place.
| Order Type | Description |
|---|---|
| Market orders | These are executed immediately at the current market price. |
| Limit orders | Set a specific price limit; the order is executed only if the stock can be bought or sold at that price or better. |
| Stop orders | When a specific price threshold is reached, the order becomes a market order and is executed at the best available price. |
| Stop-limit orders | Combines features of stop and limit orders. When the stop price is reached, the order becomes a limit order rather than a market order. |
Should I invest?
Should I invest in DreamWorks via Comcast?
Deciding whether to invest in DreamWorks via Comcast stock depends on your personal circumstances, investment strategy, and general market sentiment. Consider these points:
Why you might consider investing in Comcast
You see long-term growth in streaming. As a prominent player in the media industry, Comcast has the potential for steady growth driven by increasing demand for digital content. Key efforts include the launch and growth of Peacock, its streaming service; and innovative offerings like StreamSaver, a new multi-company streaming bundle that includes partnerships with services like Apple (AAPL 0.67%) TV+ and Netflix (NFLX 0.08%).
Comcast has also increased investment in digital content and marketing strategies to enhance discoverability across traditional and streaming platforms.
You believe Comcast will leverage AI properly, leading to growth. These days, artificial intelligence (AI) is on the lips of investors, funds, and governments. Comcast is full-steam ahead with implementing AI and algorithms that help define and drive consumer preferences. Many people believe the future will be even more tailored with the power of algorithms, giving humans selections they didn't even know they would enjoy.
You prefer stability. Comcast is included in some major index funds and exchange-traded funds (ETFs), offering more stability and less volatility than some stocks or cryptocurrencies. Although, due to satellite internet, Comcast could have challenges in its core business of broadband cable, it has historically been a very stable stock and an integral part of major indexes.
Why you might avoid investing in Comcast
You are looking for short-term gain. DreamWorks and Comcast tend to have less dramatic price swings as a stable company, which might not appeal to those seeking rapid gains or very short-term investment horizons.
You see independent media as the future. Comcast and DreamWorks have embraced the disruptive side of tech, but they suffer from some of the same issues as large media corporations.
You want to invest in something that is not so tech- and media-driven. Comcast's mature market position might not align with your investment profile if you're interested in emerging sectors or early-stage growth companies.
Profitability
Is Comcast profitable?
Yes, Comcast is profitable. Annual net income attributed to Comcast in 2024 was $15.4 billion, representing a significant 172.52% increase over 2023.
Dividends
Does Comcast pay a dividend?
Yes, Comcast pays a dividend. The company recently announced an increase of $0.08, or 6.9%, in its annual dividend to $1.24 per share and a quarterly cash dividend of $0.31 per share.
ETF options
ETFs with exposure to Comcast
| Name of ETF | ETF Ticker | AUM (in billions) | Expense Ratio | Exposure to Comcast (%) |
|---|---|---|---|---|
| Vanguard Total Stock Market ETF | (NYSEMKT:VTI) | $288.78 | 0.03% | 0.76% |
| iShares Core S&P 500 ETF | (NYSEMKT:IVV) | $300.18 | 0.03% | 0.50% |
| Vanguard S&P 500 ETF | (NYSEMKT:VOO) | $286.59 | 0.03% | 0.50% |
| Schwab U.S. Large-Cap ETF | (NYSEMKT:SCHX) | $32.13 | 0.03% | 0.49% |
| iShares Core S&P Total U.S. Stock Market ETF | (NYSEMKT:ITOT) | $42.13 | 0.03% | 0.43% |
| SPDR S&P 500 ETF Trust | (NYSEMKT:SPY) | $363.23 | 0.09% | 0.50% |
Stock split
Will Comcast's stock split?
Comcast has not announced any upcoming stock splits for the foreseeable future. The last stock split, a 2-for-1 split, occurred in 2015. Market conditions and company performance influence stock splits, but there are no indications of an imminent split.
Related investing topics
The bottom line on DreamWorks and Comcast
Investing in DreamWorks via its parent company, Comcast, offers an opportunity to own a piece of a leading media company with a solid track record of profitability and growth. Although it may not be the right fit for short-term investors or those with a high-risk appetite, it provides stability and steady returns for long-term investors.
By understanding how to buy DreamWorks stock and evaluating its performance, you can make an informed decision that aligns with your goals, risk tolerance, and general investment philosophy.
FAQ
How to invest in DreamWorks FAQ
What is the stock ticker for DreamWorks?
DreamWorks Animation traded under the ticker DWA before its 2016 acquisition by NBCUniversal, a subsidiary of Comcast. Comcast's ticker symbol is CMCSA.
Is DreamWorks publicly traded?
DreamWorks is not publicly traded because it is owned by Comcast. It was a publicly traded company until it was acquired in 2016.
Who owns DreamWorks?
DreamWorks is owned by NBCUniversal, a division of Comcast.
Can I invest in DreamWorks?
You cannot invest directly in DreamWorks, but you can invest in Comcast, which owns DreamWorks. By purchasing Comcast stock, you gain indirect exposure to DreamWorks.
What is the parent company of DreamWorks?
The parent company of DreamWorks is NBCUniversal, a division of Comcast.
