What happened
After a slide of several days starting on December 22, fuboTV (NYSE: FUBO) shareholders finally got a break today when the company announced its fourth-quarter preliminary earnings that were better than expected this morning. At the same time, the stock also received another high note from the Needham analyst.
As a result, the suddenly active streaming stock rose 22.4% at 12:18 pm EST.
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And
Fubo said it now expects fourth-quarter revenue of $ 94 million – $ 98 million, an increase of 77% -84% over the previous year’s quarter and well above its previous forecast of $ 80 million – US $ 85 million. Paid subscribers also jumped 72% to 545,000, exceeding the guidance of 500,000-510,000 subscribers.
CEO David Gandler said, “fuboTV’s strong preliminary results in the fourth quarter of 2020 exceeded what was already expected to be a record year for the company and demonstrate the consumer’s continued enthusiasm for the company’s live TV broadcast offering. “
Separately, Needham analyst Laura Martin reiterated her purchase rating and the $ 60 target price of the stock, saying the recent settlement, which dropped more than 60% of its value in just two weeks, was due to the expiration of an internal blocking period on December 30, which launched 88 million shares. Martin believes the stock has hit bottom and fundamentals should resume driving the price action.
What now
Fubo has emerged as a battlefield action in recent weeks, as analysts have lined up on both sides of the action, some calling it an epic sale and others viewing it as a long-term disruptor. The company is focused on streaming sports and aims to include sports betting on its platform. Online gambling stocks made huge gains in 2020, and exposure to that sector helped boost Fubo’s stock to $ 62.29 last month.
Streaming is a highly competitive market, but Fubo’s investors include heavyweights from legacy media like Disney, ViacomCBS, AMC Networks, and ComcastSky. Given the high expectations, disruptive potential and strong percentage sold, the stock is likely to remain volatile in the near future.