When it comes to digitally streaming sports one company stands apart from the rest. fuboTV Inc. (NYSE: FUBO) offers a wide range of content that is meticulously selected to target key demographics. It is due to this wide range of selective content that FUBO experienced a $82 million increase in revenue, which caused FUBO stock to run 150%. These gains may very well be just the beginning of FUBO’s rebound this year due to its dominance in sports streaming. That said, taking cord cutting statistics into consideration, FUBO stock could be considered a worthy long-term investment.
FUBO Fundamentals
The secret behind FUBO’s dominance in the sports media is demographic understanding. Every decision that is made by FUBO is meticulously researched, and as a result, it is able to make decisions that target key demographics. A prime example of this is their ability to target a multitude of channels in order to provide better major league coverage than any other online platform in the US. Additionally, no other streaming platform in the US offers a wider assortment of sports media. Taking these facts into consideration, it would not at all be surprising if FUBO stock continued its upward trend over the coming months.
One of the most significant upcoming catalysts for FUBO stock is the start of the NFL season in September which could cause subscriptions to increase markedly since it is the most watched sport in the US with 74.5% of Americans following it.
Pricing Power
FUBO’s clear dominance over other sports streaming platforms means that it can set its price higher than others due to the quality of its service. Earlier this year, FUBO raised its subscription by $5 on all plans yet it still has more than 1 million subscribers since there is no other platform available in the market that offers the same number of sporting events that FUBO offers.
Guidance & Cord Cutting
According to FUBO’s guidance for 2023, the company expects its subscribers to increase from 1.55 million to 1.57 million which represents an 8% YoY growth and an increase of full-year revenue from $1.235 billion to $1.265 billion. Having said that, there is a good chance that FUBO may surpass its guidance due to Cord cutting statistics and the improving economic situation in the US.
Due to digitalization, more people are moving away from traditional cable TV and acquiring digital subscriptions instead. Currently, around 35.9% of adults in the US are cord-cutters, however, that figure is projected to increase to 41.6% by 2024. Additionally, it is estimated that over 80 million US households in the US will not have any TV subscriptions in the US due to cord-cutting by 2026.
Improving Economic Conditions
Currently, inflation in the US is continuing to wane and real earnings increased in May by 0.2% according to the Bureau of Labor and Statistics. This marks the first time real earnings were positive since March 2021, which is extremely significant since real earnings represent wages after taking into account inflation. A positive number represents improved quality of life due to increased buying power.
Improved Buying Power
This increased buying power means that people have more money to utilize on commodities such as subscriptions. Taking into account the fact that FUBO is a dominant force in sports streaming, this may cause FUBO’s subscriptions to increase due to improved affordability.
FUBO Financials
According to its Q1 fiscal report, FUBO’s assets increased QoQ from $1.27 billion to $1.29 billion due to its cash balance increasing from $337 million to $358 million. On the other hand, total liabilities decreased from $874 million to $860 million, due to current liabilities decreasing from $438 million to $423 million. Taking into account FUBO’s current assets which account for $459.8 million its current ratio is 1.08, which is not ideal, but is not a negative indicator since it is still above one.
In terms of revenues, FUBO experienced a significant YoY increase from $219.1 million to $300.8 million which could be attributed to the company increasing its subscription prices. However, expenses increased YoY from $365.2 million to $405.8 million due to the increase in subscription related expenses which currently account for $301.3 million. That said, its net loss decreased from $140.8 million to $83.6 million due to its increasing revenues which may increase even further in the third and fourth quarters as a result of increasing subscriptions due to the beginning of the NFL season.
Technical Analysis
FUBO stock is in a neutral trend and is trading in a sideways channel between $2.28, and $3.08. Looking at the indicators the stock is currently above the 200, 50, and 21 MAs which is a bullish indication. Meanwhile, the RSI is approaching overbought at 65 and the MACD is curling approaching a bearish crossover.
As for the fundamentals, the upcoming NFL season is a catalyst to watch as FUBO could increase its subscribers in Q3 and Q4 thanks to the NFL’s popularity. Moreover, the company’s Q2 earnings on August 17 will also be a major catalyst since investors would want to see improved cost management from the company and growing revenues as that would put the company on the right track to achieve its target of breakeven and reaching profitability in 2025. Given the significance of these catalysts, investors could wait for FUBO stock to retest its support and go long in anticipation of the Q2 earnings report and the beginning of the NFL season.
FUBO Forecast
As things stand, FUBO is the most dominant sports streaming platform due to its wide and diverse range of content. Having said that, the current improved macro environment could help boost subscriptions as real earnings became positive last May for the first time since April 2021 – indicating stronger buying power. With the NFL season set to start next September and the improved buying power, FUBO’s subscriptions could be poised to increase in the second half of 2023 which would signal substantial revenues for the company thanks to it raising its subscription prices earlier this year.
FUBO Fundamentals
The secret behind FUBO’s dominance in the sports media is demographic understanding. Every decision that is made by FUBO is meticulously researched, and as a result, it is able to make decisions that target key demographics. A prime example of this is their ability to target a multitude of channels in order to provide better major league coverage than any other online platform in the US. Additionally, no other streaming platform in the US offers a wider assortment of sports media. Taking these facts into consideration, it would not at all be surprising if FUBO stock continued its upward trend over the coming months.
One of the most significant upcoming catalysts for FUBO stock is the start of the NFL season in September which could cause subscriptions to increase markedly since it is the most watched sport in the US with 74.5% of Americans following it.
Pricing Power
FUBO’s clear dominance over other sports streaming platforms means that it can set its price higher than others due to the quality of its service. Earlier this year, FUBO raised its subscription by $5 on all plans yet it still has more than 1 million subscribers since there is no other platform available in the market that offers the same number of sporting events that FUBO offers.
Guidance & Cord Cutting
According to FUBO’s guidance for 2023, the company expects its subscribers to increase from 1.55 million to 1.57 million which represents an 8% YoY growth and an increase of full-year revenue from $1.235 billion to $1.265 billion. Having said that, there is a good chance that FUBO may surpass its guidance due to Cord cutting statistics and the improving economic situation in the US.
Due to digitalization, more people are moving away from traditional cable TV and acquiring digital subscriptions instead. Currently, around 35.9% of adults in the US are cord-cutters, however, that figure is projected to increase to 41.6% by 2024. Additionally, it is estimated that over 80 million US households in the US will not have any TV subscriptions in the US due to cord-cutting by 2026.
Improving Economic Conditions
Currently, inflation in the US is continuing to wane and real earnings increased in May by 0.2% according to the Bureau of Labor and Statistics. This marks the first time real earnings were positive since March 2021, which is extremely significant since real earnings represent wages after taking into account inflation. A positive number represents improved quality of life due to increased buying power.
Improved Buying Power
This increased buying power means that people have more money to utilize on commodities such as subscriptions. Taking into account the fact that FUBO is a dominant force in sports streaming, this may cause FUBO’s subscriptions to increase due to improved affordability.
FUBO Financials
According to its Q1 fiscal report, FUBO’s assets increased QoQ from $1.27 billion to $1.29 billion due to its cash balance increasing from $337 million to $358 million. On the other hand, total liabilities decreased from $874 million to $860 million, due to current liabilities decreasing from $438 million to $423 million. Taking into account FUBO’s current assets which account for $459.8 million its current ratio is 1.08, which is not ideal, but is not a negative indicator since it is still above one.
In terms of revenues, FUBO experienced a significant YoY increase from $219.1 million to $300.8 million which could be attributed to the company increasing its subscription prices. However, expenses increased YoY from $365.2 million to $405.8 million due to the increase in subscription related expenses which currently account for $301.3 million. That said, its net loss decreased from $140.8 million to $83.6 million due to its increasing revenues which may increase even further in the third and fourth quarters as a result of increasing subscriptions due to the beginning of the NFL season.
Technical Analysis
FUBO stock is in a neutral trend and is trading in a sideways channel between $2.28, and $3.08. Looking at the indicators the stock is currently above the 200, 50, and 21 MAs which is a bullish indication. Meanwhile, the RSI is approaching overbought at 65 and the MACD is curling approaching a bearish crossover.
As for the fundamentals, the upcoming NFL season is a catalyst to watch as FUBO could increase its subscribers in Q3 and Q4 thanks to the NFL’s popularity. Moreover, the company’s Q2 earnings on August 17 will also be a major catalyst since investors would want to see improved cost management from the company and growing revenues as that would put the company on the right track to achieve its target of breakeven and reaching profitability in 2025. Given the significance of these catalysts, investors could wait for FUBO stock to retest its support and go long in anticipation of the Q2 earnings report and the beginning of the NFL season.
FUBO Forecast
As things stand, FUBO is the most dominant sports streaming platform due to its wide and diverse range of content. Having said that, the current improved macro environment could help boost subscriptions as real earnings became positive last May for the first time since April 2021 – indicating stronger buying power. With the NFL season set to start next September and the improved buying power, FUBO’s subscriptions could be poised to increase in the second half of 2023 which would signal substantial revenues for the company thanks to it raising its subscription prices earlier this year.