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Should You Buy the Dip in fuboTV?

Published 04/22/2021, 10:33 AM
Updated 04/22/2021, 11:01 AM
© Reuters.  Should You Buy the Dip in fuboTV?

fuboTV Inc. (FUBO), a live sports and entertainment streaming platform, saw its shares tumble 37.3% over the past month, due primarily to investors’ concerns over the company’s increasing losses and expenses. But the question is, as the TV streaming space gets heated with the arrival of more services, will FUBO be able to survive and thrive? Read on to learn more.The live TV streaming platform fuboTV Inc. (FUBO) has seen its stock price tumble 29.6% year-to-date and 37.3% over the past month. In fact, the stock is currently trading at $19.71, nearly 70% below its 52-week high of $62.29, which it hit on December 22.

Although FUBO has gained 181.6% over the past year, due primarily to a significant growth in subscription, it reported a huge net loss for 2020. Moreover, the company’s high operating costs and broadcasting expenses are causing its expenditures to outweigh its revenue generation.

In an increasingly crowded streaming space, FUBO remains unprofitable. And even though the company remains focused on growing its subscription base by investing in new content, it faces immense competition from TV streaming titans, such as Disney+ and YouTube TV. So, we think the stock could witness a further price retreat.

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