Despite triple digit year-over-year revenue growth driven by an influx of paid subscribers, fuboTV (NYSE: FUBO) is piling on the losses. While management explains that these losses are driven by heavy investments in new product specifically related to sports wagering, the company's stock has declined 41% since Jan. 1.
Why is FuboTV (Fubo) stock down today?
Why Is FuboTV (FUBO) Stock Down Today? Fubo is slipping as part of Netflix-induced streaming slump The live streaming platform FuboTV (NYSE: FUBO) is suffering losses today seemingly as a reaction to Netflix’s (NASDAQ: NFLX) recent earnings report.
How much did Fubo raise in its IPO?
(FUBO) raised $150 million in an initial public offering (IPO) on Thursday, October 8th 2020. The company issued 15,000,000 shares at a price of $9.00-$11.00 per share.
Did I lose the bet on Fubo?
I lost the bet. FUBO stock is down more than 90% over the past 12 months and is now in penny stock territory. Trading around $2.70 a share, the company’s market cap is now less than $500 million.
Where can I buy shares of Fubo?
Shares of FUBO can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include WeBull, Vanguard Brokerage Services, TD Ameritrade, E*TRADE, Robinhood, Fidelity, and Charles Schwab. Compare Top Brokerages Here.
Will FUBO ever recover?
With its partnership, FuboTv growth trajectory is expected to gain momentum in 2022. By 2025, analysts believe that FuboTv is expected to touch 2 million subscribers and revenues are expected to increase at compound annual growth rate of nearly 60 percent which is well above market expectations.
Is FuboTV down right now?
fuboTV is running smoothly!
Is FuboTV being shorted?
FuboTV's NYSE:FUBO short percent of float has risen 15.11% since its last report. The company recently reported that it has 34.91 million shares sold short, which is 25.98% of all regular shares that are available for trading.
What does fubo stand for?
After learning that the name “fubo” is short for football, Gandler filled in more details regarding the company and its vision. “The platform was built for soccer fans,” said Gandler.
Why does fubo buffer so much?
If your internet connection is not fast enough, you may experience buffering when streaming fuboTV. Normally, the fuboTV app detects the quality of the connection and adjusts the video quality automatically to match the available connection speed.
What company owns FuboTV?
FuboTVfuboTV / Parent organizationOn March 23, 2020, fuboTV was acquired by FaceBank Group, a publicly listed virtual entertainment technology company founded by media technology entrepreneur John Textor.
How much of FUBO is shorted?
fuboTV currently has a short interest ratio of 3.0.
What are the most shorted stocks?
Most Shorted StocksSymbol SymbolCompany NameFloat Shorted (%)ICPT ICPTIntercept Pharmaceuticals Inc.37.73%REV REVRevlon Inc. Cl A37.27%NKLA NKLANikola Corp.36.96%HRTX HRTXHeron Therapeutics Inc.36.21%42 more rows
How much is FuboTV worth?
And FuboTV's penchant for meaningless profitability metrics is, in my mind, a big red flag. FuboTV is still worth around $3 billion, or more than 6 times expected 2021 revenue.
How much is FuboTV losing in 2020?
The losses are big. FuboTV reported a net loss of $570 million for 2020. That figure included one-time impairment charges totaling $249 million, but even backing out those charges leaves the company with a gigantic net loss.
How much revenue will FuboTV have in 2020?
Lack of growth hasn't been a problem. Revenue nearly doubled in the fourth quarter of 2020 to $105.1 million on an adjusted basis, with subscription revenue up 91% and advertising revenue up 157%. The number of paid subscribers soared 73%, and the number of content hours streamed jumped 66%. FuboTV expects sales to jump as much as 80% in 2021, driven by an anticipated 41% increase in its subscriber base.
What is the FuboTV adjusted contribution margin?
Instead, FuboTV's adjusted contribution margin is just a proxy for revenue growth.
Is FuboTV a sports streaming service?
There's plenty of story for investors to latch onto as well. FuboTV focuses on sports, which differentiates it from other streaming platforms. The company is also planning to jump headfirst into sports gambling, with a tight integration with its streaming platform.
Does FuboTV charge per subscriber?
One problem is that content provider distribution rights, which represents the bulk of the company's subscriber related expenses, are generally charged per subscriber. Adding more subscribers produces more revenue, but it also raises FuboTV's costs.
Is FuboTV a train wreck?
Despite all of this, the stock has been a train wreck in recent months. There are a few reasons why investors may be shying away from FuboTV stock.
Where is Fubo TV located?
fuboTV's mailing address is 1330 AVENUE OF THE AMERICAS NEW YORK, NEW YORK NY, 10019. The company can be reached via phone at (212) 672-0055 or via email at [email protected].
What is FuboTV?
fuboTV, Inc. operates as a digital entertainment company. It focuses on offering consumers a live television (TV) streaming platform for sports, news and entertainment through fuboTV. The company was founded by David Gandler, Alberto Horihuela Suarez and Sung Ho Choi on February 20, 2009 and is headquartered in New York, NY.
Does FuboTV pay dividends?
fuboTV does not currently pay a dividend.
Summary
fuboTV raised guidance for FQ4, and for FY21. The company has executed well in 2021.
Investment Thesis
fuboTV Inc. (NYSE: FUBO) stock has been battered severely in recent months. It reached its all-time high (ATH) in February last year, but its momentum spike was quickly digested. While it has been trading within a tight range throughout most of 2021, its momentum started to turn extremely bearish from November.
Parsing the Hit to its Valuations
Readers can quickly glean how the compressions in the streaming space have affected both the subscriptions VOD (SVOD) leaders and the ad-supported (AVOD) leaders. That also includes Disney (NYSE: DIS), since its multiples re-rating in 2021 was also due to the momentum from its Disney+ SVOD service.
But, fuboTV Has Been Executing Well
There shouldn't be any doubt that fuboTV is still unprofitable. It's still a young upstart in the vMVPD space, including behemoths such as Disney Hulu + Live TV and YouTube TV (NASDAQ: GOOGL) (NASDAQ: GOOG).
fuboTV is Focused on Long-Term Profitability
Notably, what we really like about management is its commitment to long-term profitability. It has consistently mentioned improving operating leverage and has also demonstrated in its results in 2021. Moreover, CEO David Gandler emphasized that it's ready to do an Analyst/Investor day sometime this year.
So, is FUBO Stock a Buy Now?
We explained back in our December article that fuboTV stock valuation is getting cheaper but was in line with its legacy media peers. However, it has gotten even much cheaper, as the selling went into overdrive.
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The Economics Aren't Great
The Losses Are Big
- FuboTV reported a net loss of $570 million for 2020. That figure included one-time impairment charges totaling $249 million, but even backing out those charges leaves the company with a gigantic net loss. Given that subscriber costs will rise right along with subscription revenue, profits will likely be hard to come by. FuboTV does report a profita...
Sports Gambling May Not Be A Panacea
- Sports gambling is gaining traction as states legalize online sports betting. New York legalized mobile sports betting earlier this month, for example, although only two companies will be allowed to operate platforms via a bidding process. FuboTV is aiming to leverage its streaming platform to drive sports betting revenue. The company is planning free-to-play predictive games …
Growth, But Not Much Else
- FuboTV is certainly succeeding in winning subscribers, but those subscribers aren't going to produce any profits for the company anytime soon. The sports betting initiative may eventually pay off, but it's far from a guarantee. And FuboTV's penchant for meaningless profitability metrics is, in my mind, a big red flag. FuboTV is still worth around $3 billion, or more than 6 times expect…