FuboTV Stock Moves Lower Ahead of Earnings

The equity looks ripe for a short squeeze

Deputy Editor
Nov 9, 2021 at 2:51 PM
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Streaming staple FuboTV Inc (NYSE:FUBO) is getting ready to post fiscal third-quarter earnings after the close today. The security was last seen 2.7% lower at $32.77 ahead of the event. Below, we will dive deeper into FUBO's technical performance of late, as well as its previous post-earnings activity. 

The last time we checked in with FuboTV stock, the equity was starting to heat up after a regional networks deal. Since then, the shares shot past a ceiling at the $31 level, but fell short of reclaiming their annual highs. A new floor has come into play at the $32 area, while the 20-day moving average has helped FUBO move higher to amass a whopping 125.7% year-over-year lead.

FUBO Chart Nov 9

Over the last year, FuboTV has managed to beat earnings estimates in just one of four quarters. After its most recent earnings report in August, the security did see a roughly 11% jump.

Short sellers are building their positions, meaning a short squeeze could be in FuboTV stock's future. Short interest rose 7.3% in the last two reporting periods, and the 24.56 million shares sold short account for a significant 21.7% of the stock's available float. At the stock's average pace of trading, it would take shorts over four days to buy back their bearish bets. 

The options pits are already bullish towards the equity. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the security's 50-day call/put volume ratio of 5.64 sits higher than 87% of readings from the past 12 months. This means long calls have been getting picked up at much faster-than-usual pace in the last two months.

What's more, the security's Schaeffer's Volatility Scorecard (SVS) sits at a high 82 (out of 100), suggesting FUBO tends to exceed said volatility expectations -- a good thing for buyers. 

 

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