Yesterday, fubo TV (NYSE:FUBO) stock made its way to a three month high on heavier than normal volume. This marks the third heavy-volume FUBO stock jump in June alone. Month-to-date, the stock is up 33%. It’s making big moves.
So what’s driving FUBO’s rally?
For one, fuboTV released a blowout earnings report in May that underscored the bottom line that this is not just a Covid play.
The company’s key performance indicators accelerated in Q1 as the pandemic stay-at-home effects wound down. This strongly implies that the company’s underlying demand drivers are more related to the secular shift toward streaming TV than the temporary shift toward stay-at-home activities.
On top of that, fuboTV launched its own original programming to complement World Cup matches.
This is all fantastic news. fuboTV is doing everything it needs to be doing to emerge as a winner in the streaming TV revolution — developing its original content moat, expanding its distribution and developing its sports betting technology.
The FUBO Stock Rally Has Legs
In our eyes, it’s obvious that growth trade is back.
Yields have plunged, growth stocks have outperformed and there’s been a huge narrative shift on Wall Street. This narrative shift will last into the second half of 2021 on slowing economic expansion, abating yield pressure and increasing centralized earnings growth in the technology sector.
Growth stocks will come roaring back to life.
And fuboTV is at the center of the growth trade. The macro environment is working in its favor. Add in some renewed social momentum trading affecting, and we have a retail fan favorite on our hands.
But, more importantly, the internal fundamentals are improving rapidly — subscriber growth is accelerating, ad opportunities are improving, the content moat is being fleshed out, app distribution is expanding and sports betting initiatives are making progress.
Everything is trending in the right direction for fuboTV. This recent breakout is no mistake, and we’re betting on FUBO stock in the long run.
Which is why fuboTV’s stock ranks among my top Digitainment stocks to buy, but it’s far from my only pick.
The world’s entertainment services are being digitized at a pace that’s accelerating, as globalization and technological convenience converge to create a more tech-centric society.
In fact, in my free e-letter, Hypergrowth Investing, I cover streaming media companies often, as well as other hypergrowth stocks that include companies in social media, advertising and iGaming.
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On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.