Here’s what investors need to watch with fuboTV stock | Smart Switch: Personal Finance

fuboTV (New York Stock Exchange: FUBO) You are in a competitive market. But can the sports-focused streaming platform prevail by adding a sports betting component to its platform? In this clip from “IPO & SPAC Show” on motley fool live, recorded on April 11Motley Fool contributors Nicholas Rossolillo, Danny Vena, and Jason Hall discuss fuboTV’s finances, growth, and challenges.

10 stocks we like better than fuboTV, Inc.

When our award-winning team of analysts has stock advice, it’s worth listening to. After all, the newsletter they have published for over a decade, Motley Fool Stock Advisorhas tripled the market.*

They just revealed what they think are the top ten stocks investors can buy right now…and fuboTV, Inc. wasn’t one of them! That’s right, they think these 10 stocks are even better buys.

*Stock Advisor returns from April 7, 2022

Nicholas Rossolillo: This is where the October 7 IPO date went, it raised $183 million through that public sale. The IPO price went up 10% and then as the rest of 2020 went on, and then in early 2021 the stock price went through the roof and this ties back to what Jose was talking about a few minutes ago on DraftReyes (NASDAQ:DKNG). This is obviously your TV streaming platform. But the really exciting part that I think investors liked about fuboTV was the integration with sports betting on their platform. Good revenue growth in 2020, large operating loss and negative free cash flow. But the company was adding a lot of new subscribers and then fast-forward to 2021, another big jump in subscribers to 1.3 million. Revenue more than doubled on an organic basis, excluding a couple of acquisitions they made. They launched fubo Sportsbook. We introduce that sports betting component on the platform. I think that’s what got a lot of investors excited. But here is the reality with this company. Large operating losses and the balance sheet is not really what you want to see, I don’t think, if you’re thinking of taking on a new investment in fresh stock, $374 million in cash. They already have $316 million in debt, and based on the cash burn rate, we’re seeing this company having to raise more liquidity through a secondary offering of more shares, perhaps raising more debt. I don’t know. What do you guys think about fubo here? I think the story is interesting. Obviously streaming TV is great. There’s the sports betting component, but the financials just don’t line up for me.

Jason Hall: One of the things that challenges me with fubo is that, unlike a lot of other platforms, it doesn’t own the content, and it’s always going to fight that battle of content and sports, which is something it really focuses on. Even niche sports are tough and competitive and that’s a challenge and you don’t want to be a company that’s running out of money, burning cash with its stock 80% below its IPO price looking to make a secondary. It’s a challenging time right now to be this business.

Danny Vena: If you were looking for someone to temper your lack of enthusiasm for this venture, you won’t find them here because I remember reading a story that they raised their prices even though they lost TNT and TBS, which are big draws. for companies that stick to the cable transmission option.

Living: Well that’s also basketball, TNT and TBS, a lot of basketball and baseball.

Danny Vena has no position in any of the aforementioned stocks. Jason Hall has no position in any of the aforementioned stocks. Nicolás Rossolillo has no position in any of the actions mentioned. The Motley Fool owns and recommends fuboTV, Inc. The Motley Fool has a disclosure policy.

Add Comment