Why Is fuboTV Stock Higher Today?
- FuboTV (NASDAQ:FUBO) stock popped more than 5% on Wednesday, despite streaming peer Netflix (NASDAQ:NFLX) reporting unimpressive first-quarter numbers just days earlier.
- Those numbers broadly underscored that the streaming TV industry is slowing down as the pandemic recedes, the physical economy reopens and consumers more frequently go back outside.
- One would think that’s bad news for FUBO stock.
- Wall Street doesn’t think so: fuboTV’s stock rallied in a big way, despite Netflix’s sour earnings report.
How Netflix Impacts FUBO Stock
- Netflix reported a sharp slowdown in subscriber growth in the first quarter of 2021, and called for that slowdown to get worse in the second quarter as the company faces headwinds from a “pull-forward” of demand into 2020 thanks to the pandemic.
- Many fear these same “pull-forward” demand headwinds will show up in fuboTV’s first-quarter earnings report.
- Indeed, fuboTV’s app download trends followed a similar downward trend as Netflix’s in the first quarter of 2021, per data from Similar Web.
- But fuboTV has one thing that Netflix doesn’t have: sports.
- Sports could save FUBO stock this quarter.
Why Sports Matter to fuboTV Stock
- Consumers may have watched less Netflix TV shows and movies during the first quarter of 2021. But they watched more sports.
- In the first quarter of 2021, we had a Super Bowl and March Madness — two huge sporting events after a near 12-month lull in sports outside of the NBA playing in a bubble in Florida.
- FuboTV is a huge beneficiary of this, because it is a sports-focused live TV streaming service. The whole value prop of fuboTV is that you can stream live sports without a cable box.
- SimilarWeb data does show that fubo.tv web traffic dipped in February, but then rebounded in March. First-quarter traffic trends overall look healthy.
- This difference means fuboTV’s earnings could look a lot better than Netflix’s earnings.
FUBO Stock Price Forecast
- We believe FUBO stock is fundamentally undervalued.
- Long-term, we have confidence in fuboTV’s ability to acquire exclusive local and international sports content, amass an unrivaled war-chest of live sports streaming rights, launch an interactive digital sportsbook that integrates with its streaming platform, and ultimately put all those pieces together to create the world’s first all-in-one, digital sports-betting-and-streaming platform where consumers can interactively watch and bet on sports through a digital platform.
- We see this as the future. If fuboTV does successfully create this platform, then FUBO stock will one day be worth multiples of itself.
- Execution risks here are large. But fuboTV’s market cap is small. Even minimal success in this pursuit could result in multi-bagger returns.
- The consensus analyst price target on FUBO stock is $46. We think shares are worth at least $50, based on the company’s long-term earnings growth potential.
- We see 100%-plus upside in shares over the next 12 months.
FUBO stock is a great play on the fact that the world is pivoting from linear TV to streaming TV. This pivot encompasses Netflix, fuboTV, Roku (NASDAQ:ROKU), Disney (NYSE:DIS), AT&T (NYSE:T) and so many more. By the end of the decade, everything we watch will be through the internet. Cable boxes will be as obsolete as CD players are today.
Netflix stock is the blue-chip stock to buy to play this streaming revolution. Roku stock is a higher-upside but still relatively safe bet. fuboTV stock may be the highest upside play in the space. That’s why it belongs in my Innovation Investor portfolio, which is focused on investing in emerging companies pioneering breakthrough technologies and business models which could change the world.
FuboTV fits that billing. It’s the next Netflix.
But it’s one of dozens stock picks in this ultra-exclusive portfolio.
To get the names, ticker symbols, and key business details of the rest of these potential 10X stock picks, click here.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
By uncovering early investments in hypergrowth industries, Luke Lango puts you on the ground-floor of world-changing megatrends. It’s how his Daily 10X Report has averaged up to a ridiculous 100% return across all recommendations since launching last May. Click here to see how he does it.