fuboTV is an American streaming television service that primarily focuses on channels that distribute live sports, including NFL, MLB, NBA, NHL, MLS, and international soccer, in addition to news, network television series, and movies. Founded in 2015 as a soccer streaming service, fuboTV has expanded its channel lineup to include a broad range of sports, news, and entertainment channels.
A new form of investing is momentum investing, which is about buying stocks already doing well, hoping they’ll go even higher. It’s different from the old advice of “buy low and sell high.” Instead of buying cheap stocks and waiting for them to rise, momentum investors buy rising stocks and hope they rise even more.
One such stock is fuboTV Inc. (FUBO). It’s risen recently, with a 1.2% increase in the last four weeks. Over the past 12 weeks, it’s gone up by 18.2%. It’s also a stock that moves a lot, moving 147% more than the average market movement. Because of its recent performance, FUBO has a top momentum rating. And even with its fast rise, FUBO’s price compared to its sales is still low. Investors are paying 61 cents for every dollar of the company’s sales.
With increasing web searches and traffic, I think $FUBO presents a substantial opportunity for a long-term investment. Fubo’s web traffic usually increases in September, but it’s even higher this year. This might be because of a disagreement between Charter and Disney.
However, it’s still not as high as the boost they saw last December. I’m unsure if Fubo can become profitable. Maybe if they focus on soccer and attract fans worldwide and in the US, they could find a unique market. But if other streaming services offer the same content, people might not want to pay more for Fubo. I’m also wondering if they could target other specific audiences in the US, like college football fans.
Fubo faces a challenging path, requiring more than just a temporary ESPN blackout to spur its recovery. Despite its growth, the company is still not profitable, with a reported adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) loss of $30.5 million. Additionally, its free cash flow deficit is $75.8 million, and the company doesn’t anticipate positive free cash flow until 2025. Even though Fubo’s paid subscriber base is rising, the sports entertainment landscape is becoming increasingly competitive. Tech giants are securing exclusive broadcast rights for their platforms, which could pose even more challenges for Fubo.
I decided to open a Call position due to the upcoming earnings date, increased traffic and searches, and some significant events. My current position is 2 – $4 Calls expiring January 4th at .29 each.
