FuboTV Stock Is a Buy as Subscribers Grow, It Adds Gambling

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  • FuboTV (FUBO) stock has been sacked by ‘da bears
  • Revenue growth, market leadership and the sports betting vertical point to significant upside
  • Buy FUBO shares with a strong offensive and defensive strategy
A picture of a FuboTV (FUBO) logo on a smart phone against a computer keyboard.

Source: Lori Butcher/ShutterStock.com

Shares of streaming live sports upstart fuboTV (NYSE:FUBO) gained serious yardage Tuesday as FUBO stock added more than 7.3% on the session.

A broader bid across risk assets–  led by tech shares — on optimism surrounding ceasefire negotiations and welcome monthly consumer confidence data helped with FUBO’s bulls suiting up.

Still, FUBO stock also had its own cheering section, despite shares losing more than 50% in 2022.

FuboTV received a boost midway thru the session after CNBC Halftime Report co-host Pete Najarian named the stock among his final trades. It didn’t take much to get the “Pit Boss” on the offensive side of FUBO — just some extra calls in a stock that’s been “absolutely beaten down.”

Nevertheless, let’s examine why a bit of bullish noise could turn into a much larger offensive move in FUBO stock — and how to best suit up for positioning.

FUBO fuboTV $7.60

fuboTV’s Bullish Fundamentals

Don’t expect the company of a typically faster-money Pete Najarian for too long. Still, investors should feel confident about a longer-term commitment to FUBO stock.

It’s not a secret that headlines screamed with disgust at fuboTV’s fumble in late February, after the outfit posted a slightly larger-than-forecast loss and warning for the next quarter. No doubt it makes for good entertainment. Yet despite the earnings miss, FUBO stock continued to nail down growing its business.

Lost or dismissed in a more bearish investing environment, its overall revenues cranked higher by 144% from the year-ago period. Also, fuboTV posted terrific year-over-year subscriber growth and stronger margins while reducing its marketing spend.

And FUBO’s new and much anticipated sports betting feature should only improve user stickiness and the platform’s growth opportunities.

Speaking of which, fuboTV’s management announced the platform crossed the million-subscriber hurdle and now has a clear path to reaching sustainable profitability.

What’s more, as the broader market forges ahead in a new bull cycle, FUBO stock’s massive valuation hit and overall strong business improvements afford it an attractive 1.6x forward sales multiple. And that should have bulls coming off the bench and onto the playing field!

Scorecard on the FUBO Stock Price Chart

fuboTV (FUBO) massive undercut variation of double bottom pattern
Source: Charts by TradingView

What also rightfully deserves bullish investors’ attention is FUBO stock’s monthly price chart.

This year’s broader market correction compounded fuboTV’s bear market by sinking shares a staggering 87% from their peak valuation of $62.24, captured near the height of SPAC (special purpose acquisition company) mania in December 2020.

More interesting, a game controlled by the ‘da bears is now in position to begin a new era favoring the bulls. Today investors are being presented with a formidable undercut variation of a classic double-bottom pattern.

With stochastics oversold but flattening, price action further supported by FUBO’s lower monthly Bollinger band and the start of the second quarter fast approaching, I’d wager bulls can reclaim $16. They may be able to push to as high as $20 by the time the whistle blows on 2022.

Prior to taking possession of FUBO stock, April’s candle should first confirm March’s smallish but volatile doji and trade above $8.83.

Capture the Upside, Control the Defense in FUBO Stock

If investors are in the market to buy a persuasive market leader at an attractive discount, FUBO stock gives you a chance at profiting from an outsized rally.

Importantly, buying fuboTV, even 17% higher near $8.83, remains a wager on a riskier company. And as Jerry Maguire’s Rod Tidwell famously said, “show me the money!” makes sense.

Bottom line, no matter how excited you might be about owning the next Apple (NASDAQ:AAPL) or Tesla (NASDAQ:TSLA), Rod’s words are relevant to being a smarter stakeholder in FUBO stock.

One wise but slower-money way that looks likely to deliver on that message while providing a stronger defense than FUBO stock is a Jan $12.50/$15 bull call spread.

On the date of publication, Chris Tyler did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


Article printed from InvestorPlace Media, https://investorplace.com/2022/03/fubotv-stock-is-a-buy-as-subscribers-grow-it-adds-gambling/.

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