FuboTV (NYSE:FUBO) operates as an entertainment, sports, and media streaming service with about 1.6 million global subscribers as of Q3. In the past year, shares of FUBO stock have fallen by over 65%. However, 2023 may be a different story, as shares are up by about 80% year-to-date.
During Q3, Fubo reported North America (NA) revenue of $219.2 million, up 40% year-over-year (YOY), and a Rest of World (ROW) revenue of $5.8 million. Ad revenue for NA tallied in at $22.5 million, up 21% YOY. Meanwhile, the company ended the quarter with $307.4 million in cash and cash equivalents, contributing to Fubo’s confidence in its liquidity position.
However, in a time of high interest rates, profitability is scrutinized more than ever. Fubo reported a net loss of $152.7 million during Q3, up from a loss of $105.9 million a year ago. The current loss was heightened by a $35.5 million non-cash impairment charge “pertaining to intangible and other long-lived assets associated with our gaming segment.” Net loss was also impacted by operating expenses from Fubo’s wagering business and the acquisition of Molotov in 2021.
For guidance, Fubo forecasts NA revenue to be between $277.5 and $282.5 million and NA subscribers to total between 1.355 million and 1.375 million. For ROW, it forecasts revenue between $5 and $6 million and total subscribers between 355,000 and 365,000.
BlackRock Increases FUBO Stock Stake
According to an amended Schedule 13G filing received by the Securities and Exchange Commission (SEC) on Jan. 31, BlackRock (NYSE:BLK) owns a total of 14.57 million shares as of Dec. 31, equivalent to 7.5% of all shares outstanding. In Q3, the asset management firm reported owning 13.47 million shares after selling 1.78 million shares during the quarter. That means that BlackRock purchased 1.1 million shares of FUBO sometime during Q4.
BlackRock’s stake cements it as the second largest shareholder of FUBO, trailing behind Vanguard’s stake of 16.36 million shares. Vanguard’s stake is accurate as of Q3, so its ownership may have changed during Q4. State Street (NYSE:STT) is the third largest shareholder of FUBO with a 4.98 million share stake.
Furthermore, analysts appear to be optimistic about the company. Five analysts have an average price target of $4.40, which would spell an upside of over 30% from current levels.
On the date of publication, Eddie Pan did not hold (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.