The last several days have been fantastic for fuboTV (OTCMKTS:FUBO). The stock has gone continuously upward for the last week, with the standard break for the weekend thrown in. But what's driving the impressive gains in this lesser-known streaming site? How much longer will it be “lesser-known” with results like these behind it? Those interested in picking up some fuboTV in hopes of landing a new Netflix (NASDAQ:NFLX) competitor may have sound reason to do so.
A Media Property Turned Media Darling
One of the biggest reasons behind the astronomical gains seen recently at fuboTV, reports note, is that the company's overall visibility is improving. With investors better able to see what the company has in store—and actually see the company's existence to begin with—many investors are throwing some weight behind this upstart media property.
One of the latest moves featured fuboTV's CEO, David Gandler, showing up on the “Voices of Wall Street” podcast a few days ago, who revealed a possibility of live sports showing up on fuboTV programming. Gandler's response wasn't exactly definitive. In fact, it was pretty much the direct opposite of definitive as Gandler declared “Everything is always on the table.” before pointing out he couldn't say much more specifically as the company was in a “quiet period” that kept a lot of specifics from being announced. That was all investors really needed to hear, believing that live sports were among the everything on the table at fuboTV and investing accordingly.
This is rather unusual, as some reports suggest the company's “quiet period” actually ended in mid-November, so what Gandler was referring to on “Voices of Wall Street” isn't exactly clear.
Analysts Behind the Company Already
Granted, “extra visibility” isn't exactly the best of reasons to own fuboTV, but the analyst community—based on our latest research—is throwing in a good reason of its own. The company has enjoyed a “buy” consensus rating for the last month, which is about as long as the stock has been out of its last “quiet period”.
The ratios have slipped a bit in that month, however. A month ago the company enjoyed six “buy” ratings, with no other rating involved. The seventh rating to step in, though, was a “hold”, which left the company at six “buy” ratings and one “hold.” Still, that's a fairly sound suggestion as reasons go to buy in.
The price target, in that same time frame, has nearly doubled, going from $21.83 a month ago to $40.14 today. Given the stock closed yesterday at $62, there's a clear downside, and a potential for some new price target increases to show up. Today alone, BMO Capital Markets upgraded its price target from $33 per share to $50, and that's even with lowering the recommendation to “market perform” from “outperform.”
Still Worth Tuning In
On the surface, fuboTV looks like a lot of streaming video cable alternatives out there. It's got a wide string of cable channels available; a casual look makes it seem almost like a Dish Network (NASDAQ:DISH) package, complete with four variants of BET and three of FX, though no Cartoon Network to speak of. Pricing looks about the same as well, with prices starting at $64.99 a month.
Where fuboTV really excels, though, is in its range of sports options. Several Fox Sports entries, several ESPN entries, and of course, fuboTV's own network all appear as options herein. While live sports have only so much value right now, given the shaky nature of the professional and collegiate sports lineups right now, any return to normalcy—or an approach to same—will give fuboTV that much more value.
FuboTV has even found value in branching out. Just recently, fuboTV acquired Balto Sports, which gives it a step into the online sports betting market. By being able to offer betting alongside its sports presentations, and doing so wholly in-house, the company has given itself a whole new revenue stream. If it can use that revenue to subsidize its cable prices, it can offer a greater value to many of its competitors and draw in more interest.
With fuboTV making new inroads all over—its share of the streaming market is now 5%, which is better than double what it was this time two years ago—and new partners stepping in to make fuboTV the new standard like Hisense, there's a lot more reason to like fuboTV than there was this time last year. Or even this time two years ago. If it can keep growing at this rate, it might well end up one of the biggest new players in streaming. It will certainly be a force to be reckoned with, and buying in, even at these prices, may not be such a bad idea.
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