Is fuboTV a Buy Under $10?

: FUBO | fuboTV Inc. News, Ratings, and Charts

FUBO – Currently trading at less than $10, streaming services provider fuboTV (FUBO) has lost significant ground due to investors’ concerns about its weak profitability and poor bottom-line performance. So, let’s evaluate if it’s worth adding the stock to one’s portfolio, given the rising competition in the streaming space. Read on.

The shares of Live TV streaming platform fuboTV Inc. (FUBO - Get Rating) have retreated 75.8% in price over the past year and 59.4% over the past three months to close yesterday’s trading session at $8.55. In addition, the stock is currently trading below its 52-week high of $43.28, which it hit on March 2, 2021.

Though the New York City company posted 106% growth in its total paid subscribers in its recent fourth-quarter earnings release, it reported a significant net loss for its fiscal year 2021. Furthermore, its high operating costs and broadcasting charges have outweighed its revenue generation.

While the company is making efforts to build and expand its membership base by investing in new content, it faces stiff competition from TV streaming behemoths like YouTube TV and Disney+.

Here’s what could shape FUBO’s performance in the near term:

Negative bottom line

FUBO’s revenue increased 119.9% year-over-year to $231.06 million for the fourth quarter, ended Dec. 31, 2021. Its operating loss grew 19.2% from the prior-year quarter to $110.01 million. The company’s net loss came in at $111.96 million, while its loss per share amounted to $0.76. In addition, its net cash used in operating activities increased 29.2% for the year ended Dec. 31, 2021, to $192.60 million.

Poor Profitability

FUBO’s 0.79% trailing-12-months CAPEX/Sales multiple is 79.5% lower than the 3.9% industry average. Also, its ROA, ROC, and net income margin are negative 27.9%, 26.6%, and 59.9%, respectively. And its trailing-12-month cash from operations stood at negative $192.60 million compared to the $299.71 million industry average.

POWR Ratings Reflect Uncertainty

FUBO has an overall D rating, which equates to Sell in our proprietary POWR Ratings system. The POWR ratings are calculated considering 118 different factors, with each factor weighted to an optimal degree.

Our proprietary rating system also evaluates each stock based on eight different categories. FUBO has an F grade for Stability and Quality. The stock’s 3.11 beta is consistent with the Stability grade. In addition, the company’s weak financials and poor profitability are in sync with the Quality grade.

Among the 15 stocks in the F-rated Entertainment – Sports & Theme Parks industry, FUBO is ranked last.

Beyond what I’ve stated above, one can view FUBO ratings for Value, Growth, Sentiment, and Momentum here.

Bottom Line

Given the competitive streaming market, FUBO’s weak profitability and inability to generate profits may stifle its growth in the near term. The stock is currently trading below 50-day and 200-day moving averages of $12.28 and $22.89, respectively, indicating a downtrend. In addition, analysts expect its EPS to decline 5.1% in the current quarter (ending March 2022) and remain negative in its fiscal 2022 and 2023. Therefore, we believe the stock is best avoided now.

How Does fuboTV Inc. (FUBO) Stack Up Against its Peers?

While FUBO has an overall D rating, one might want to consider its industry peers, SeaWorld Entertainment Inc. (SEAS - Get Rating), which has an overall B (Buy) rating.

Want More Great Investing Ideas?

3 Stocks to DOUBLE This Year


FUBO shares fell $0.09 (-1.05%) in premarket trading Tuesday. Year-to-date, FUBO has declined -44.91%, versus a -8.07% rise in the benchmark S&P 500 index during the same period.


About the Author: Pragya Pandey


Pragya is an equity research analyst and financial journalist with a passion for investing. In college she majored in finance and is currently pursuing the CFA program and is a Level II candidate. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
FUBOGet RatingGet RatingGet Rating
SEASGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


Stock Market Update: It’s Complicated!

The S&P 500 (SPY) may have bounced 17% from recent lows, but the outlook for stocks from here is...in a word...COMPLICATED. Read on to get Steve Reitmeister full market outlook and trading plan for this complicated market environment.

Becoming More Bullish on Stocks, But...

Stocks are on a roll with the S&P 500 (SPY) up more than 10% from the recent lows. Before you start getting too giddy, you should read this updated market outlook and trading plan Steve Reitmeister.

Stock Market Held Hostage

Uncertainty is the term most often applied to this stock market. Uncertainty over tariffs. Uncertainty of whether the S&P 500 (SPY) will fall into bear territory. Uncertainty over what happens next. Steve Reitmeister dives into the uncertainty to make sense of the market in this week’s commentary...

Stock Market Standing on the 50 Yard Line

Steve Reitmeister contemplates where the stock market stands now and what happens next in trying to stay on the right side of the market action. One path points to bear and one to new highs for the S&P 500 (SPY). Which will it be?

Bear or Bull Market?

The S&P 500 is on the brink of bear market territory...but that outcome is not a given at this time. Steve Reitmeister shares insights gleaned from his 45 years of investing to shine a light on current conditions along with his top picks...

Read More Stories

More fuboTV Inc. (FUBO) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All FUBO News