FuboTV (NYSE:FUBO) got sacked last year. And this year’s game in FUBO stock against the bears has seen bulls lose additional and costly yardage. But for investors that love a good comeback, live streaming sports and online betting outfit FUBO also looks ready to gain the homefield advantage.
With that said, let’s take a closer look at what’s happening with fuboTV and determine why bullishness toward FUBO is justified today.
A Quick Breakdown of FUBO Stock
There’s no way around it. This past year was tough for FUBO investors. Shares closed 2020 at $28. One year later, fuboTV could be purchased for $15.52. Today, it trades around $8.
To make matters worse, the market’s big league bellwethers stormed aggressively higher to all-time-highs on the back of larger-than-average, double-digit returns.
Now FUBO stock’s scorecard in 2022 is showing more troubling results. After 2021’s 44% haircut, FUBO stock is down another 45% inside of the first quarter with a full month to go.
To be perfectly fair, if misery loves company, fuboTV shareholders have a great support group to sit down and commensurate with.
DraftKings (NASDAQ:DKNG), QuantumScape (NYSE:QS), Opendoor Technologies (NASDAQ:OPEN) and the list goes on.
They’re well-traded names among special-purpose acquisition companies of all mission types and sizes.
Moreover, each was also punished by a couple rounds of inflation and Covid-19-driven concerns last year and each is feeling similar growing pains this year.
Today of course, the Kleenex can be extended to investors of almost any stock that isn’t oil-related or considered a safe haven due to elevated geopolitical, inflation and interest rate risks.
The good news is investors have an attractive opportunity to get off the sidelines and go long FUBO stock right now.
Intense fear like what we’re seeing in today’s market environment historically has a way of working itself out. And the reality is those occasions most often yield strong results for those buying amid the uncertainty and warnings to seek cover.
Okay, but what about that earnings disappointment in FUBO last week?
It’s true fuboTV did fumble with a slightly larger-than-forecast loss and warning for the next quarter. But the company has also consistently nailed down the growth part of the equation. And last quarter was no exception. In fact, overall revenues ballooned by 144% from the year-ago period.
FUBO is also posting solid year-over-year subscriber and margin increases on reduced marketing.
What’s more, in crossing the 1 million subscriber mark FUBO stock’s management also announced a clear path to reaching sustainable profitability.
Given the past year’s valuation hit and overall strong business improvements working their way into an attractive sales multiple of roughly 1.6x, it’s time for bulls to take the field.
FUBO Stock’s Monthly Price Chart
Source: Charts by TradingView
Taking to the field and buying FUBO stock right now also looks advantageous for other reasons too.
The fact is fuboTV is already a streaming sports force. And its building that presence with online betting that’s just getting underway.
Sure there’s streaming sports competition from Disney’s (NYSE:DIS) ESPN and Alphabet’s (NASDAQ:GOOG, NASDAQ:GOOGL) subscription-based YouTube TV.
But sweating potential competitors with FUBO shares also trading at a small-cap valuation of just $1.3 billion is taking the eye off the ball in a very bullish big picture. Also, the chance for big upside in FUBO stock appears positively strong.
As the monthly chart reveals, fuboTV shares have formed a bullish hammer candlestick that has narrowly undercut the stock’s Fib-based Gartley spanning late 2020 into late spring 2021.
An improving oversold stochastics that’s flattening improves the chance for a meaningful reversal and bull market to emerge in FUBO stock.
To be fair, not too many months ago the expectation was for shares to continue rallying to new highs following Gartley pattern’s completion in May.
That didn’t happen of course. Among other things, a double-top stopped that possibility in its tracks.
Again though and more importantly, given everything that’s happening off and on the price chart, investors buying FUBO stock today stand to profit handsomely in the weeks, months and years ahead.
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.
