FuboTV, Amid Wild Ride, Says 4Q Subs Up 72%

fuboTV
(Image credit: fuboTV)

Streaming service fuboTV, whose stock has been on a wild ride, said it expects to report big gains in subscribers and revenue for the fourth quarter.

The upbeat forecasts helped fuboTV shares reverse a sharp recent decline.

Fubo stock jumped from $26.47 on Dec. 15 to $62 on Dec. 27, then plunged to $24.24 on Monday as analysts wrote that the company’s revenue and subscribers growth was in a virtual MVPD business that was unlikely to produce profits. 

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On Tuesday, Laura Martin, an analyst at Needham, reiterated a buy recommendation for fuboTV. Martin noted that fubo’s stock was weak because 88 million shares acquired by programmers became unlocked on Dec. 30, affecting the demand-supply balance in the market. 

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She said that the company will benefit from subscriber growth, a live sports button coming on Hisense TVs sold at Walmart and the potential of the company’s move into wagering.

FuboTV shares were up 15% in pre-market trading Tuesday to $27.92 and up 21% in morning trading on the New York Stock Exchange. FuboTV shares closed Tuesday at $27.33, up 12.75%.

Read Also: FuboTV Reports Loss as It Makes Sports Betting Plans

FuboTV said it expects fourth quarter revenue to be between $94 and $89 million, up 77% to 84% from a year ago. The company previously said revenue was expected to be between $80 million and $85 million.

Paid subscribers were expected to be more than 545,000 at the end of the year, up 72% from a year ago. Prior guidance to Wall Street was 500,000 to 510,000 subscribers.

“FuboTV’s strong preliminary fourth quarter 2020 results exceeded what was already expected to be a record year for the company, and demonstrate continued consumer excitement for the company's live TV streaming offering,” said fuboTV co-founder and CEO David Gandler. “In 2021, we will continue to be laser focused on executing our growth strategies, which include continuing to grow advertising revenues, working to implement sports wagering into our product and further establishing fuboTV as a leader in sports and live streaming.”

Jon Lafayette

Jon has been business editor of Broadcasting+Cable since 2010. He focuses on revenue-generating activities, including advertising and distribution, as well as executive intrigue and merger and acquisition activity. Just about any story is fair game, if a dollar sign can make its way into the article. Before B+C, Jon covered the industry for TVWeek, Cable World, Electronic Media, Advertising Age and The New York Post. A native New Yorker, Jon is hiding in plain sight in the suburbs of Chicago.