Ask Matt: How can my portfolio profit from the Olympics?

— -- Q: How are the Olympics affecting NBC's bottom line, and can investors profit from the Games?

A: TV viewers have Olympics fever and are cheering on their favorite countries. Investors, though, are trying to figure out how to score a gold medal for their portfolios.

Typically, the Olympic Games aren't the huge boon to the TV company as many viewers think they are, says Josh James of Stifel Nicolaus. Due to the large investments and fees required, James initially forecast that NBC would lose more than $200 million in the third fiscal quarter due to the London Games.

However, the London Games are shaping up better than expected, to the tune of $100 million ahead of plan, James says. So far, ratings of the London Games are running 9% ahead of the Beijing Games, James says, while many had expected ratings to be down 20%. All told, NBC will likely break even on the London Games, rather than posting a loss.

Meanwhile, Comcast benefits as it's able to use the relatively popular Games to promote its fall lineup of programming. The shows will ultimately need to be captivating to hold the audience, but at least NBC can use the Games to get viewers and advertisers in the door at first, he says. Furthermore, the Olympic Games have been a chance for Comcast to show investors it has the experience to manage NBC on a grand scale.

There are also indirect benefits to NBC and Comcast, as well. Comcast has been able to boost advertising rates and affiliate fees paid by video providers across its cable networks due to Olympics coverage, James says.

NBC Sports Network is setting records thanks to its Olympics coverage, he says. The goal is for NBC Sports Network to catch up with the lucrative affiliate fees charged by rival ESPN, he says.

Meanwhile, the fact NBC is spreading Olympics coverage across its cable networks, including MSNBC, CNBC, Bravo and NBC Sports, is showing how Comcast is able to leverage its properties to make money from the Games, says Amy Yong of Macquarie Securities.

There's still time to profit from Comcast's stock now that the Olympics are starting to wind down, say James, who has a $38 price target on Comcast stock. Additionally, investors can enjoy the stock's 2% dividend yield while waiting. Comcast has long attracted investors looking for stability and predictable revenue from subscriber fees.

The stock could get a jolt as investors factor in the fact that NBC is likely to break even on the Olympics coverage rather than suffering a $200 million loss, he says. "If Comcast can break even, which they alluded to, I think they can make this a very profitable franchise going forward," Yong says.

Matt Krantz is a financial markets reporter at USA TODAY and author of Investing Online for Dummies and Fundamental Analysis for Dummies. He answers a different reader question every weekday in his Ask Matt column at money.usatoday.com. To submit a question, e-mail Matt at mkrantz@usatoday.com. Follow Matt on Twitter at: twitter.com/mattkrantz