Sporty streaming service FuboTV (NYSE:FUBO) has increased the attention of investors. FUBO shares were traded on the stock exchange in October 2020, initially around $ 10.
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FUBO stock was above $ 20 in November after announcing strong third-quarter results that showed “solid growth in sales, subscription and engagement.”
Shareholders enjoyed the surge to a high of $ 62.69 in late December when it fell 135% in just one week. The stock sold off sharply after that high, falling below $ 30 as quickly as it did below $ 60. Since then, however, the share price has rebounded slightly and is now at $ 34.
The New York-based company was founded in 2015 to mainly stream football and only focus on (international) football demand. However, later in 2017, all major sports began streaming primarily in the sports sector, including the NFL, NBA, and MLS.
FuboTV has been named the next year (NASDAQ:YEAR), This went from around USD 20 in September 2017 to the current share price of USD 460. We have seen growth in too Netflix (NASDAQ:NFLX) and Youtube, belongs alphabet (NASDAQ:TogetL, NASDAQ:Aco), how both introduced a new way of viewing media.
Could FuboTV be the company that is changing the way sports are viewed? Recent media and investor attention seems to be pointing to this possibility. Potential investors might consider buying the dips. Here’s why.
Sports streaming and betting
Since the pandemic began, FuboTV has benefited from the increased number of people at home and with leisure. It ended 2020 with over 550,000 paid subscribers, a 72% increase over the year. That growth doesn’t seem to slow down once people start looking at the sport at an increasing pace.
Where FuboTV has really made headway in the past few months is the drive to incorporate sports betting into the current streaming service. In January, the company acquired a sports betting platform and game company called Vigtory for an undisclosed amount. This transaction is expected to close in the first quarter and be fully implemented by the end of 2021.
Following the acquisition, FuboTV CEO David Gandler said, “The proposed acquisition of Vigtory will give FuboTV the technology to develop a consumer-centric sports betting product and bring it to market before the end of this year.”
During the NYC Sports Betting Investor Summit in February, some moderators speculated that growth would only increase as the path to legalizing sports betting is clear to all 50 states.
Statista estimates the sports betting industry topped $ 203 billion globally last year. FuboTV is now building a strong system that could benefit the company greatly as the market gets more demand.
The company is also in the process of raising $ 3.5 million that won’t become due until 2026. This strong inflow of funds will help the company continue its long-term vision with new projects. Therefore, if future quarterly reports show continued growth, we could easily see this stock continue to rise sharply.
The conclusion of Fubo Stock
Investors in FUBO stocks have seen strong returns since October. In January, FuboTV had a short 76% stake, indicating that Wall Street is split in the company. Short interest is a measure of how far a stock is shorted. Those who short stock positions win when the stock price falls.
On the other hand, SC-13G’s recent filings with the SEC show that some big names are buying large amounts of stock. Morgan Stanley (NYSE:MRS) submitted a 5.1% share purchase while Goldman Sachs (NYSE:GS) bought 6.7%.
vanguard also bought 6.57% and Comcast (NASDAQ:CMCSA) recently announced owning 9.3%. This totals over 27.5% acquired by large companies in the past few weeks, suggesting that the long side of this stock could ultimately outperform the shorts.
As a young company, stocks in FUBO shares are likely to be volatile. However, buy-and-hold investors with a two- to three-year horizon might consider getting part of the falls in the sports streaming service’s stocks.
At the time of publication, Tezcan Gecgil had positions (neither directly nor indirectly) in the securities referred to in this article.
Tezcan Gecgil has been involved in investment management in the US and UK for over two decades. In addition to formal higher education in the field, she has also completed all three levels of the Chartered Market Technician (CMT) exam. Her passion is options trading, which is based on the technical analysis of fundamentally strong companies. She especially likes setting up covered calls to generate income on a weekly basis.