FuboTV Inventory Bounces Again On Preliminary This autumn Subscriber Features, Income Beat – .
FuboTV shares rebounded sharply after the operator of the streaming pay-TV bundle released preliminary fourth quarter results that showed higher subscriber growth and better-than-expected revenue.
The stock rose more than 16% above $ 28 in early trading, double its normal volume, and erased some of its recent losses.
Total revenue for the quarter is projected to be $ 94 million and $ 98 million, respectively, representing a profit of 77% to 84% over the same period in 2019. The company had previously estimated it would hit $ 80 million to $ 85 million. (Fubo merged with the FaceBank Group in 2020, which made comparisons with the prior-year quarter inaccurate.)
Fubo expects 545,000 subscribers by the end of the year, up 72% year over year and above previous projections for 500,000 to 510,000.
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The final figures for the fourth quarter will be announced in the next few weeks.
The five-year-old startup has been discussing its shares fiercely among traders and on Wall Street in recent days. After going public at $ 10 per share in October, it soared to $ 62 in late December before turning crater-like in recent sessions on the wave of bearish sentiment that was overvalued. Cops see this as a technical outbreak along the lines of Roku or even Netflix.
In a research reiterating her buy rating for stocks, Laura Martin of Needham & Co. described the stock as “an affordable way for public investors to participate in the US consumer shift towards OTT and streaming TV.” . LightShed Partners’ Rich Greenfield was one of those who contradicted this bullish view, setting a target price of $ 8 on the stock, based on valuation and what he believed to be serious flaws in the business model of services once known as “skinny bundles” , described as the “most convincing short”. ”
A stock market lockout, which expired in late December, also had a negative impact on the share price, allowing some investors to secure profits and unload stocks.
In the Internet TV bundle, Fubo follows Hulu + Live TV, YouTube TV and Sling, each of which has between 2.5 and 4.1 million subscribers.
Preliminary fourth quarter results “exceeded the record year anticipated for the company and demonstrate continued consumer excitement for the company’s live TV streaming offering,” said co-founder and CEO David Gandler in a press release. “In 2021 we will continue to focus on the implementation of our growth strategies. This includes further increasing advertising revenues, implementing sports betting in our product and further establishing FuboTV as a leading provider of sports and live streaming.”