Investors who have owned stocks in the past year have generally experienced some big gains. In fact, the SPDR S&P 500 ETF Trust (NYSE:SPY) total return over the last 12 months is 29.2%. But there is no question some big-name stocks performed better than others along the way.
FuboTV’s Bumpy Ride: One company that has been a disappointing investment in the past year has been streaming TV company Fubotv Inc (NYSE:FUBO).
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FuboTV was one of the hottest stocks of 2020, a year in which the company reached nearly 550,000 subscribers. A primary bull thesis driving those huge returns was that FuboTV could monetize its user base, especially via the company's plans to offer sports betting on its platform. FuboTV is a sports-centric service.
Instead, FuboTV investors have spent the past year watching other platforms jumping out to first-mover advantages in U.S. sports betting, including a sports betting partnership between Draftkings Inc (NASDAQ:DKNG) and DISH Network Corp (NASDAQ:DISH) announced in March 2021.
Meanwhile, FuboTV continues to generate losses from its core business, including a $106 loss in the third quarter on just $156.7 million in revenue. On a positive note, the company’s user base continued to grow rapidly in 2021 and reached 944,605 in the third quarter, up 108% from a year ago.
For now, FuboTV is a relatively small player in the streaming TV market, but it is gaining market share from its competitors. There is a massive potential market of traditional pay-TV households up for grabs and if the company can demonstrate a long-term path to profitability next year, FuboTV could have tremendous upside potential.
At the beginning of 2020, FuboTV shares were trading at $9.58. By the beginning of March, the stock was down to $7.77. When the market crashed during the U.S. COVID-19 outbreak later that month, FuboTV shares dropped as low as $5 during the height of the pandemic fears.
When the market bounced off those lows, FuboTV began to rebound as well. The stock reached $22 per share in May before the recovery rally fizzled out.
FuboTV regained the momentum of the broader market in the fourth quarter of 2020. The stock skyrocketed as high as $62.29 in December 2020. Unfortunately, that level would mark the stock's pandemic high.
FuboTV In 2021, Beyond: Despite consistently impressive growth numbers, FuboTV’s heavy losses and lack of significant progress on sports betting have weighed on the stock in 2021.
FuboTV stock hit its 2021 highs above $50 in late January but pulled back to its low of the year at $14.64 in May. After several months of trading above $20, FuboTV is on track to finish 2021 at just under $17.
FuboTV investors who bought the stock one year ago and held on hoping for more bullish momentum in 2021 have generated a lackluster return on their investment at this point. In fact, $1,000 in FuboTV stock bought on Dec. 27, 2020, would be worth about $401 today.
Looking Ahead: Analysts are expecting bullish price action from FuboTV in the next 12 months. The average price target among the eight analysts covering the stock is $43.50, suggesting a 157.4% upside from current levels.
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