Shares of FuboTV Inc (NYSE:FUBO) are extending their rally Wednesday morning, building on strong gains from Tuesday’s after-hours session after the company announced preliminary second-quarter financial results that beat estimates.
What To Know: The sports-centric streaming platform revealed it expects North American revenue to exceed $365 million, significantly beating its earlier guidance of $345 million. Subscriber numbers also surpassed expectations, with North American paid users projected to top 1.35 million.
The most significant news for investors is Fubo's first-ever quarter of positive adjusted EBITDA, expected to be at least $20 million. This represents a major step toward sustainable profitability and a year-over-year improvement of more than $30 million. The company also anticipates narrowing its net loss to approximately $8 million while maintaining a strong cash position of at least $285 million.
In light of a proposed business combination with Hulu + Live TV, Fubo announced it is pausing future financial guidance to retain flexibility. Consequently, it has withdrawn its 2025 profitability target.
The company is scheduled to release its full second-quarter earnings report before the market opens on August 8, where it will provide a further business update.
Following its strong preliminary results, FuboTV received upgraded price targets from analysts at Needham, who raised their target to $4.25 while maintaining a Buy rating, and Wedbush, who lifted their target to $6.00 with an Outperform rating.
Benzinga Edge Rankings: According to Benzinga Edge rankings, FUBO shows exceptional trading momentum, scoring an impressive 93.63, which reflects the stock’s powerful price action. This is contrasted by a low Value score of 39.26, suggesting the stock may be considered expensive on a fundamental basis compared to its peers.
Its Growth score is moderate at 48.31, while a Quality score was not available. This profile highlights a stock with very strong current market sentiment but a less compelling picture based on traditional value and growth metrics.
Price Action: According to data from Benzinga Pro, FUBO shares are trading higher by 20.8% to $4.27 Wednesday morning. The stock has a 52-week high of $6.45 and a 52-week low of $1.15.
How To Buy FUBO Stock
Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.
For example, in FuboTV’s case, it is in the Communication Services sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.
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