For much of 2020, sports-centric live TV streaming platform FuboTV (NYSE:FUBO) was a company that the markets didn’t pay much attention to. That changed quickly, though, when Reddit users started talking about FUBO stock.
There was an epic short squeeze and the share price soared. Or, to be more precise, the stock soared twice – once last year, and then again this year.
In April 2021, FUBO stock is back down and contrarian investors should put it on their watch list. After all, it’s the same company today as it was when the share price was mighty higher.
Indeed, FuboTV is probably a much better company than the market realizes. As we’ll see, a couple of value-adding deals and some impressive data should convince the skeptics that FuboTV deserves more attention.
FUBO Stock at a Glance
Believe it or not, as recently as October of 2020, FUBO stock was below $10. In hindsight, we now know that this was a major bargain.
Possibly due to attention from Reddit traders and what may have been a short squeeze, the stock sailed higher in November and December. The peak was reached on Dec. 22, 2020, when the share priced topped out at $62.29.
I should clarify, though, that there was a smaller peak in February of 2021. More specifically, FUBO stock rallied to $52 and change on Feb. 1, 2021.
By mid-April, however, the stock had retreated to the $20 area. Perhaps the Reddit fervor just isn’t there anymore. Still, that shouldn’t be a problem, as now we can focus on the company and the progress it’s been making.
Upping the Subscriber Count
In the world of streaming TV, the subscriber count is of paramount importance. Without the subs, there would be no revenues to speak of.
Given the decline of FUBO stock, you might be led to believe that the company is losing subscribers. Yet, the opposite is true.
Recently-reported data actually reveals that FuboTV had its strongest fourth quarter and year in the company’s history.
During FuboTV’s fourth fiscal quarter, the company generated $105.1 million in revenues. With that, FuboTV exceeded $100 million in quarterly revenues for the first time.
Moreover, for fiscal year 2020, FuboTv earned total revenues of $268.8 million, marking a year-over-year increase of 83%.
But again, none of this would be possible without the subscribers. Fortunately, FuboTV demonstrated growth in this area as well.
As it turned out, FuboTV finished 2020 with 547,880 paid subscribers. That includes 92,800 net subscriber additions during the fourth quarter.
Also importantly, in 2020 FuboTV’s customers streamed 7.2 hours per day, representing a year-over-year increase of 11.8%. Thus, not only are sports fans flocking to the FuboTV platform, but they’re watching for hours on end.
Making Deals
In order to keep up this incredible pace of growth, FuboTV will likely need to work closely with value-added partners.
And indeed, that’s exactly what FuboTV’s been doing lately. Just to give you one example, the company recently signed a carriage agreement that will bring Chicago Cubs game coverage to FuboTV customers.
The deal is with Marquee Sports Network, and it will enable subscribers throughout the Marquee Sports Network territory to have access to all Marquee programming.
This programming will include “all non-nationally televised regular season Chicago Cubs games, pregame and postgame shows, exclusive content, original programming and much more.”
Meanwhile, FuboTV has also inked a deal to acquire the exclusive live streaming rights to the Qatar World Cup 2022 Qualifying matches of the South American Football Confederation.
Reportedly, this will provide FuboTV with exclusive OTT (over-the-top) live-streaming rights for the remaining 70 matches, including Qatar World Cup 2022 Qualifiers.
FUBO Stock: The Takeaway
With its recently established agreements and partnerships, and with strong subscriber growth, FuboTV is cementing its position as the leading sports-first live TV streaming platform.
For FUBO stock investors, this means that there’s no reason to dump your shares – and perhaps now you’ll even be motivated to add to your position.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
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