For those in the streaming biz, 2020 was a blast from start to finish.
But for the sports-focused streaming service FuboTV, that blast was particularly wild.
Since going public in October, FuboTV has seen its stock skyrocket almost 500%, only to plummet 50%+ from its mid-December high of $62.
Much of the yo-yo-like volatility comes as Fubo has turned into what the investment community calls a “battleground stock,” with long and short analysts bitterly debating the company’s future.
In Q3, Fubo reported subscriber growth of 58% year-over-year to 455k and revenue growth of 71% to $61.2m. It also saw total content hours streamed increase 83% to 133.3m.
In December, Fubo bought fantasy sports software company Balto Sports with the aim of pairing Fubo’s content with Balto’s tech to build a live-sports gambling platform.
FuboTV recently lost the rights to networks that host games for the NBA, the MLB postseason, and the sports-gambling event of the year: March Madness.
Add to that a shrinking market for live TV along with popular competitors like YouTube TV and Hulu + Live TV — with 3m+ and 4.1m subscribers, respectively — and FuboTV bears have a point.
In a real zinger, LightShed Partners’ Rich Greenfield gave FuboTV stock an $8 target, saying it “may be the most compelling short we have ever identified in our career as analysts.”
Ouch.
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