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Is FuboTV a Buy After Announcing It Reached 1 Million Subscribers?

Published 11/16/2021, 07:55 AM
Updated 11/16/2021, 08:31 AM
© Reuters.  Is FuboTV a Buy After Announcing It Reached 1 Million Subscribers?

Sports-first live TV streaming platform fuboTV Inc. (FUBO) saw an influx of subscribers in the third quarter of 2021, driving it to one million subscribers. Also, its viewership hours reached record highs. However, the company’s shares plummeted in price following a press release announcing the company’s successes. So, given that FUBO is currently trading at a lofty valuation, the question becomes is the stock worth betting on now? Read on.Streaming service provider fuboTV Inc. (FUBO) in New York City operates a live TV streaming platform for sports events, news, and entertainment content in the United States and Europe. The company reached the one million subscriber milestone in the third quarter, indicating its solid position in the business. FUBO reported a 113% year-over-year increase in viewership hours, hitting record highs with fuboTV customers streaming 284 million hours of content during the third quarter. Furthermore, its total paid subscribers were up 108% year-over-year during the quarter.

"The one million subscriber milestone represents an exciting inflection point in our business, with tremendous implications for revenue growth and profitability, particularly given the continued strength of our advertising business," said Edgar Bronfman Jr., executive chairman, fuboTV, in a released statement.

However, the release failed to impress investors. The stock has declined 26.7% in price since the company reported its third-quarter financial results and surge in subscribers on November 9. FUBO shares have lost 12.4% year-to-date to close yesterday’s trading session at $24.55. The stock is currently trading below its 50-day and 200-day moving averages of $27.96 and $26.88, respectively. The stock has a 3.10 beta, which indicates high volatility.

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