fuboTV
Shares of FuboTV (FUBO 16.59%), a streaming service for sports fans, have collapsed from the peaks they reached in late 2021. Wall Street expects a big comeback. The average price target on the stock suggests it can rise 56% over the next 12 months.
Wall Street's bullish for FuboTV because the way Americans watch local sports is changing fast. Traditionally, sports teams sell local viewing rights to regional sports networks like Sinclair Broadcast Group. Those rights are then licensed to cable and satellite TV providers that spread the cost to all of their subscribers.
NYSE: FUBO
fuboTV
Today's Change
(16.59%) US$ 0,36
Current Price
US$ 2,53
FUBO
Key Data Points
Market Cap
$738M
Day's Range
US$ 2,14 - US$ 2,56
52wk Range
US$ 0,96 - US$ 8,14
Volume
279,460
Avg Vol
13,510,728
Gross Margin
-4.85%
Dividend Yield
N/A
Back when everyone had cable, those fees worked out to a few dollars a month. Now that there are far fewer subscribers, those fees are so high that cable companies have started refusing to license rights to air local sports. FuboTV, though, is more than happy to make the deals cable companies are increasingly unable to afford.
Streaming services are famous for spending lavishly on content that may or may not attract long-term subscribers. Licensing local sports is a more straightforward venture that is pushing FuboTV's bottom line into profitability. First-quarter revenue soared 34% year over year, while operating expenses climbed just 11%.
FuboTV's recent market cap of just $586 million seems far too low for a streaming service provider likely to dominate the market for local sports. Investors want to keep an eye on the bottom line in the quarters ahead. For now, though, it looks like the analysts are right to pound the table on this stock.
