FUBO Stock: Why Streaming TV Play FuboTV Is Up Big Today

Do you have a pair of scissors handy? You may need them, as news today looks like further evidence that it is past time to cut the cord and embrace streaming TV plays. On Thursday afternoon, FuboTV (NYSE:FUBO), a smaller player in the space, is up big. So what is behind the move in FUBO stock? And why does it matter for investors?

A picture of a FuboTV logo on a smart phone against a computer keyboard.

Source: Lori Butcher/ShutterStock.com

First, what is FuboTV? Well, the company is yet another play in the world of streaming TV. However, with market capitalization of just $2 billion, it is much smaller than some of the more well-known names. And importantly, it also takes a slightly different approach to the market.

Essentially, FuboTV is all about live TV streaming. Just like YouTube TV and Sling TV, it is an operator of these services. And as InvestorPlace analyst Luke Lango wrote recently, FuboTV may very well give consumers the most options for the best price. Why? Well, FuboTV has an entry-level package that combines 113 channels for $65 each month. This compares to a similar package from YouTube TV that comes with just 85 channels — meaning that consumers will miss out on some of their favorite sports and news channels.

Investors likely know that novel coronavirus catalysts support the streaming TV space, as does the broader cord-cutting trend. But why exactly is FUBO stock up nearly 20% on Thursday?

Well, it looks like the answer is a stock-picking recommendation from The Motley Fool. Earlier in the day, social media users shared an article from the Rule Breakers service titled “Buy FuboTV.” In the article, the writer outlines the case for FuboTV, highlighting how the FuboTV audience continues to grow quickly. Additionally, The Motley Fool highlighted the fact that FuboTV is the first such platform that puts sports first.

FUBO Stock and the Cord-Cutting Catalyst

But why should investors really care about the big move in FUBO stock? Turn to Lango for that answer.

Earlier this week, he recommended FuboTV, saying that investors who get in now are going to ride a major growth opportunity. In fact, he said that buying FUBO stock now is like buying Netflix (NASDAQ:NFLX) 10 years ago. How about that for growth!

Underneath his bullishness is the reality that consumers are moving away from traditional TV options quicker than ever. They are at home, watching TV in large numbers thanks to Covid-19. However, they are also looking to consume the channels and the content they want in new formats. And, they want to spend less than before on this content. That makes up-and-coming, live TV options like FuboTV increasingly attractive.

So what should you do? Keep a close eye on FUBO stock here. Beyond recommendations from Lango and The Motley Fool, Wall Street is turning bullish. Yesterday saw Wedbush analyst Michael Pachter set a price target of $40, implying 13% upside from current prices.

On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article. 

Sarah Smith is a Web Content Producer with InvestorPlace.com.

Article printed from InvestorPlace Media, https://investorplace.com/2020/12/fubo-stock-why-streaming-tv-play-fubotv-is-up-big-today/.

©2021 InvestorPlace Media, LLC