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FUBO’s subpar performance can be attributed to intense competition, ongoing legal challenges and pressures from the virtual MVPD market.
FUBO’s Earnings Estimates Indicate Y/Y Growth
For the fourth quarter of 2024, FUBO expects revenues from North America to be between $426 million and $446 million, representing 9% year-over-year growth at the midpoint. Revenues from the rest of the world are expected to be between $8 million and $9 million, indicating flat year-over-year growth.
For the full year 2024, FUBO expects revenues from North America to be $1.58 - $1.6 billion, representing 19% year-over-year growth at the midpoint. Revenues from the rest of the world are expected to be between $33 million and $35 million, representing 4% year-over-year growth at the midpoint.
The Zacks Consensus Estimate for FUBO’s fourth-quarter revenues is pegged at $446.66 million, indicating 8.89% year-over-year growth. The consensus mark for the fourth-quarter loss is currently pegged at 12 cents per share, unchanged over the past 30 days, and indicating year-over-year growth of 29.41%.
The Zacks Consensus Estimate for FUBO’s 2024 revenues is pegged at $1.63 billion, indicating year-over-year growth of 18.86%. The consensus mark for the 2024 loss is currently pegged at 37 cents per share, unchanged over the past 90 days, and indicating year-over-year growth of 49.32%.
FUBO has beaten the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 36.89%.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Strong Market Opportunity Aids FUBO’s Prospects
FUBO is benefiting from the shift to streaming, with legacy pay-TV subscribers dropping from 105 million in 2010 to 50 million in 2024. Nearly 30% of customers who left traditional pay-TV have embraced virtual MVPDs in the last 12 months, highlighting strong demand for FUBO’s offerings.
FUBO provides several options, including its Free Tier, standalone subscriptions and a sports-first virtual MVPD, catering to different consumer needs and price sensitivities. Gamification tools such as polls and trivia games in live streams enhance the interactive ad experience, making FUBO’s offerings more attractive to advertisers.
The preliminary injunction against the sports streaming joint venture from Disney (DIS - Free Report) , Fox (FOXA - Free Report) and Warner Bros. Discovery (WBD - Free Report) strengthens FUBO’s competitive position in the streaming market and underscores its antitrust claims.
However, as Disney, Fox and Warner Bros. Discovery have appealed this injunction, FUBO faces significant legal challenges. The ongoing antitrust case, set for trial in 2025, prolongs uncertainty for FUBO.
FUBO has also been facing tough competition from big names like Peacock, ESPN+ and Paramount+, which have substantial resources and are creating intense competition in the space.
Furthermore, the success of the virtual MVPD model is critical to offsetting the decline in traditional pay-TV, which places pressure on FUBO to maintain its edge in this segment.
What Should Investors Do With FUBO Stock?
FUBO is benefiting from the growing shift to streaming and its innovative offerings but faces headwinds of market competition and ongoing legal challenges.
Image: Bigstock
FUBO Shares Fall 46% YTD: How Should Investors Play the Stock?
FuboTV (FUBO - Free Report) shares have decreased 45.6% year to date (YTD), underperforming the Zacks Consumer Discretionary sector’s appreciation of 15% and the Zacks Broadcast Radio & Television industry’s return of 55.3%.
FUBO’s subpar performance can be attributed to intense competition, ongoing legal challenges and pressures from the virtual MVPD market.
FUBO’s Earnings Estimates Indicate Y/Y Growth
For the fourth quarter of 2024, FUBO expects revenues from North America to be between $426 million and $446 million, representing 9% year-over-year growth at the midpoint. Revenues from the rest of the world are expected to be between $8 million and $9 million, indicating flat year-over-year growth.
For the full year 2024, FUBO expects revenues from North America to be $1.58 - $1.6 billion, representing 19% year-over-year growth at the midpoint. Revenues from the rest of the world are expected to be between $33 million and $35 million, representing 4% year-over-year growth at the midpoint.
The Zacks Consensus Estimate for FUBO’s fourth-quarter revenues is pegged at $446.66 million, indicating 8.89% year-over-year growth. The consensus mark for the fourth-quarter loss is currently pegged at 12 cents per share, unchanged over the past 30 days, and indicating year-over-year growth of 29.41%.
The Zacks Consensus Estimate for FUBO’s 2024 revenues is pegged at $1.63 billion, indicating year-over-year growth of 18.86%. The consensus mark for the 2024 loss is currently pegged at 37 cents per share, unchanged over the past 90 days, and indicating year-over-year growth of 49.32%.
FUBO has beaten the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 36.89%.
fuboTV Inc. Price and Consensus
fuboTV Inc. price-consensus-chart | fuboTV Inc. Quote
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Strong Market Opportunity Aids FUBO’s Prospects
FUBO is benefiting from the shift to streaming, with legacy pay-TV subscribers dropping from 105 million in 2010 to 50 million in 2024. Nearly 30% of customers who left traditional pay-TV have embraced virtual MVPDs in the last 12 months, highlighting strong demand for FUBO’s offerings.
FUBO provides several options, including its Free Tier, standalone subscriptions and a sports-first virtual MVPD, catering to different consumer needs and price sensitivities. Gamification tools such as polls and trivia games in live streams enhance the interactive ad experience, making FUBO’s offerings more attractive to advertisers.
The preliminary injunction against the sports streaming joint venture from Disney (DIS - Free Report) , Fox (FOXA - Free Report) and Warner Bros. Discovery (WBD - Free Report) strengthens FUBO’s competitive position in the streaming market and underscores its antitrust claims.
However, as Disney, Fox and Warner Bros. Discovery have appealed this injunction, FUBO faces significant legal challenges. The ongoing antitrust case, set for trial in 2025, prolongs uncertainty for FUBO.
FUBO has also been facing tough competition from big names like Peacock, ESPN+ and Paramount+, which have substantial resources and are creating intense competition in the space.
Furthermore, the success of the virtual MVPD model is critical to offsetting the decline in traditional pay-TV, which places pressure on FUBO to maintain its edge in this segment.
What Should Investors Do With FUBO Stock?
FUBO is benefiting from the growing shift to streaming and its innovative offerings but faces headwinds of market competition and ongoing legal challenges.
FUBO currently carries a Zacks Rank #3 (Hold), suggesting that it may be wise for investors to wait for a more favorable entry point in the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.