- FuboTV held an investor day on Tuesday.
- Management said it would achieve profitability by 2025.
- CFO said company only requires $100 million to achieve profitability.
FuboTV (FUBO) may be the latest meme stock. After advancing 45% on Tuesday, shares are up another 4.1% in Wednesday’s premarket to $6.61. The sports live streaming platform has been on a tear over the past month as it became a major short squeeze candidate. The stock is up a whopping 140% over the past month, while at the same time trading 77% down from its share price one year ago.
Tuesday’s surge was the product of management holding their first investor day presentation since the company went public through a merger in October 2020. Executives stressed the high-growth, high-loss firm would now pivot to a “path to profitability”.
FuboTV stock news
The main reason for this surge in activity over the past month is that FUBO has had about 30% of its float shorted of late (31% at the end of July to be exact). The meme stock police took notice and saw it as a worthy vehicle with which to punish short-sellers. Thus far the strategy has been quite a success.
Fubo stock crested at $8.14 on Tuesday afternoon before dropping to close at $6.35.This was the highest level it had traded at since March 18, nearly five months ago.
FuboTV’s investor day showed a management team with great confidence in achieving profitability. Executives expect revenue to double between 2022 and 2025 by focusing on adding both more subscriptions and advertising. Over the past four quarters, FuboTV has garnered revenue of $851 million, already much higher than 2021’s $638 million. The presentation focused on as well on raising average revenue per user by the high single digits annually.
CFO John Janedis said: “We continue to work toward long-term targets of adjusted EBITDA profitability and positive cash flow in 2025, and the Fubo flywheel will help us track toward that goal, as we execute a plan of controlled growth, alongside margin expansion.” Janedis would have surprised some shareholders when he said that achieving profitability would only require about $100 million in additional capital through either debt or equity. Since going public Fubo has increased its share count from 44.5 million to 185.1 million, selling new shares or adding employee stock-based compensation in pretty much every single quarter.
FutboTV ended its $65/month low-end subscription offering in April but said it had experienced few cancellations. The company Pro Plan starts at $70/month, and its premium offering goes for $80 a month. A Spanish-language package also retails for $33/month.
FuboTV stock forecast
FuboTV stock got caught up at the $8 resistance level on Tuesday. Around 2:30 PM EST FUBO stock quickly began selling off after reaching above $8. This level of resistance was stubborn and defiant back in the second half of March, so it is no surprise that it worked again.
With shares up in Wednesday’s pre-market, another bumper crop day could send FUBO stock through $8 toward February’s supply zone from $11 to $11.89. It is pretty uncertain how long this rally can last, but it has already been working for three weeks. That period coincides with the rising accumulation that can be seen at the bottom of this daily chart. In three weeks the line has risen from -524 million to -418 million, which is the kind of accumulation needed for a long-term uptrend. Long-term support remains at $2.35, although the 21-day moving average (now at $3.28) may also afford support.
FUBO daily stock chart