Is the Risk Worth the Reward with Fubotv Stock?

FUBO is trading at its lowest level since 2019

Deputy Editor
Apr 28, 2022 at 11:37 AM
facebook twitter linkedin

Fubotv Inc (NYSE:FUBO) will release its first-quarter earnings results after the close on Thursday, May 5. FUBO has remained in negative earnings territory going into 2022 and Wall Street analysts anticipate that Fubotvs earnings will come in at -$0.66 per share for the upcoming earnings report.

Fubotv stock has lost a concerning 75% this year, and 82% in the past 12 months. The security was last seen down 3% to trade at $3.83, marking its lowest level since June 2019. The 10-day moving average has been guiding shares lower for the majority of April, while the 30-day acted as a ceiling in late-March. 

Analysts remain quite bullish, despite the recent price action. Of the nine in coverage, five call FUBO a "buy" or better, without a single "sell" to be seen. Plus, the 12-month consensus price target of $14.35 is a 273.9% premium to current levels. 

The streaming live sports company has finally reached an attractive valuation from a risk-reward standpoint. Although profitability is still nowhere near for the business, Fubotv stock’s price-sales ratio of 0.98 is very intriguing, given its top-line growth rate. For fiscal 2021, FUBO reported $638.35 million in revenues and $382.84 million in net losses, which indicated 193% revenue growth and a $187.67 million increase in net income. Fubotv is also estimated to increase revenues by 74.2% and its EPS by $0.20, from -$2.78 to -$2.58, for fiscal 2022. In addition, estimates have the company growing revenues by 40.20% and their EPS by $0.35, from -$2.58 to -$2.23, for fiscal 2023.

However, Fubotv stock continues to be a high-risk play, due to the competitive nature of the streaming industry and its relatively average balance sheet. FUBO currently holds $374.29 million in cash and $363.9 million in total debt, which could be a limiting factor for both their long-term growth rate and efforts towards achieving profitability.


Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

Schaeffer's Daily Bulletin Offer


Special Offers from Schaeffer's Trading Partners