Live Sports And Streaming – Is It Getting Better?
FuboTV stock rises after another impressive profit. But can the sports streaming company continue its dominant growth?
It’s football season again, and you know what that means. Sundays are devoted to watching the games. Still, this season may look different to many viewers, with more than 5 million people cutting their cable subscriptions in 2020. The decision leaves fans looking for other options to watch the game. Many choose the FuboTV (NYSE: FUBO) streaming app.
FuboTV Inc. offers streamers the ability to watch live sports, TV, and movies with over 100 channels. Users can choose from different shots, each providing a unique experience for the viewer.
27% of cable TV subscribers plan to end their subscription this year. Is this the opportunity that FuboTV has been waiting for?
Let’s take an in-depth look at what FuboTV stock investors can expect from the highly anticipated sports streaming app.
The right company
We all know that 2020 has disrupted several industries, forcing companies to adapt or lag behind. In addition, it accelerated trends that were already developing before the pandemic.
One of the biggest trends seen by investors is the rapid transition to streaming, which is still underway today. FUBO’s stock investors hope the company can capitalize on the growing streaming market.
FuboTV has a unique advantage over much of the competition in live sports. Not only is the streaming market expected to reach nearly $ 843 trillion by 2027. But sports also remain the main category of prime-time television programming. In addition, 90% of sports fans admitted that they were willing to pay for sports programming. It looks like a match made in heaven.
FuboTV Inc. aims for disruptive growth
The good news for investors is that FuboTV is on a mission to grow. In a recent interview, Fubo CEO David Gandler predicted that 40 to 50 million consumers will subscribe to certain streaming services over the next five years. He also believes that FuboTV can capture around 10% of the market share. Here’s what the company is doing to make it happen.
- Launch of Fubo Sportsbook. In January, the company announced that it was acquiring sports betting company Vigtory. Fubo is busy using the company’s technology to build his own bookmaker, which launched in the fourth quarter. The move can be huge for FuboTV, with a record 45.2 million Americans planning to bet on this year’s NFL season. A 36% increase over last year.
- Root Sports Northwest Broadcast. The sports streaming company recently announced that it will add regular season games to select customers’ plans. The teams included are the Seattle Mariners (MLB), Seattle Kraken (NHL) and Portland Trailblazers (NBA). The games will be available to everyone in Washington, Oregon, Montana, Alaska, and parts of Idaho.
- Free to play games. Vigtory also gave them exclusive access to innovative play capabilities. The free games platform has been in testing so far. Free games provide users with the ability to stream sports, track stats, and play games all on one screen.
- Availablity. The premier sports streaming app now offers its services on VIZIO SmartCast TVs (NYSE: VZIO). That being said, FuboTV is now basically available on all major streaming devices. Greater availability can help increase exposure of FuboTV.
All of these developments are important in FuboTV’s mission to five million subscribers.
FuboTV Share – Profit Growth
One bright spot for Fubo’s stock investors is the company’s impressive growth. Progress is being made in several aspects of the business. The second quarter earnings report is another step in the right direction for the growing company. Here are some highlights.
- Record income. FuboTV reported a record total revenue of $ 130.9 million. A 196% increase over the previous year. The company has continued to increase its turnover since the start of 2020.
- Growth of subscribers. When it comes to streaming companies, growth in subscriber numbers can be a useful metric to track. In the second quarter, FuboTV added nearly 92,000 new pay subscribers. This brings the total number to 681,721. An increase of 138% year-over-year.
- Advertising revenue. High ad revenue can give growing businesses a flow of funds to drive growth. FuboTV’s advertising revenue exploded in the second quarter to $ 16.5 million. A growth of 281% compared to the previous year.
- Commitment. Total engagement on the Fubo app reached a record 245 million hours of streaming. Growth of more than 148% compared to the previous year.
- Net loss. Despite strong growth in the second quarter, the company lost $ 94.9 million.
Without a doubt, this quarter shows that FuboTV is making the right decisions to position the company for future growth. In addition, several key indicators point in the right direction. If the company continues to grow at this rate, it will soon become a household name.
FuboTV Stock Predictions – What’s New for Live Sports Streaming App
Lately, it looks like everything is going well for FuboTV with new partnerships, record revenues and exciting new products on deck. FuboTV’s stock has grown by over 230% in the past year, but most of that growth has occurred in 2020.
The stock currently sits just below $ 26 per share. With major developments advancing this year, will FuboTV’s share price reflect the improvements?
Believe it or not, Fubo stock is currently trading at a discount to the lower end of the FUBO price targets. With a median price target of $ 42 per share, it reflects, for example, upside potential of over 70%. This rise may present a reasonable risk-return scenario for long-term FuboTV equity investors.
But, it’s possible that Fubo will slow down his current pace. In this case, investors would do better to prepare for a volatile second half. With the results coming on November 12, we should have a better idea of FuboTV’s future growth potential.
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About Pete Johnson
Pete Johnson is a seasoned financial writer and content creator specializing in equity and derivatives research. He has over ten years of personal investment experience. Rummaging through 10-K forms and finding hidden treasures is his favorite pastime. When Pete isn’t doing stock research or writing, you may find him enjoying the outdoors or sweating while exercising.