FuboTV share price surges on preliminary Q4 release

FUBO share price surges following market update

NYSE-listed TV streaming platform fuboTV (FUBO) saw its share price surge overnight following the release of its preliminary fourth quarter (Q4) results.

As part of this preliminary release, the company reported significant beats to both its Q4 revenue and paid subscription metrics. On the top-line, the company revealed that it expected total revenue to come in at between $94-98 million, implying a year-over-year increase of between 77-84%. The company had previously guided for revenue of between $80-85 million, implying a 15% beat on the top-end of prior guidance.

On the subscriber front, Fubo also beat on its prior guidance, reporting that it expected to have 545 thousand subscribers by the end of the quarter, implying an increase of 72%. The company had previously guided for subscriber figures of between 500-510 thousand.

Commenting on these results, Fubo’s CEO David Gandler said:

‘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.’

Looking ahead, Mr Gandler argued that:

‘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.’

Off the back of these results investors bid FUBO 12.75% or $3.09 higher overnight, with the stock finishing out Tuesday’s session at $27.33 per share – somewhat off its intraday peak of $30.77 per share. At those price levels, the company has a market capitalisation of $1.85 billion.

Despite yesterday’s share price spike, FUBO remains well-off its 52-week high of $62.29 per share.

After a monumental run between October and December, the stock has come under heavy selling pressure following the release of a number of scathing short reports. Of the most prominent, analyst Richard Greenfield described the stock as ‘may be the most compelling short we have ever identified.’

At the time, Mr Greenfield slapped an $8 price target on FUBO.

Greenfield remains sceptical following the release of the company’s Q4, tweeting:

‘Pre-announcing a 40,000 subs beat without any color on costs/profit, nor Q1 guidance misses the FAR larger point that the vMVPD business is a fundamentally BAD business.’

Despite that negative view, Wall Street remains bullish on FUBO overall, assigning the stock a BUY rating on average, according to MarketWatch.

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