fuboTV (NYSE:FUBO) recently experienced a significant price move of 20% over the past month. The company's recent change of auditors, shifting from KPMG to PricewaterhouseCoopers, occurred amid preparations for a business combination with The Walt Disney Company and Hulu, aligning with SEC requirements. This change in auditing structure, alongside a strong Q1 earnings report showing a shift to profitability, likely added momentum to the stock's rise against a backdrop of an overall flat market. These factors, coupled with a multi-year agreement with the European League of Football, may have contributed additional investor interest.
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The recent developments around fuboTV such as the change of auditors and partnership with The Walt Disney Company and Hulu could significantly influence the company's trajectory. The combination of Hulu + Live TV and fuboTV is projected to increase scale, which may enhance competitive offerings and bolster revenue growth. The transition to profitability as indicated by the latest earnings report reflects positively on fundamental performance. Over the past year, fuboTV has delivered an impressive total return of 191.94%, highlighting distinct growth far exceeding the 9.5% return for the US Interactive Media and Services industry.
With revenue currently at US$1.64 billion and earnings of US$70.31 million, analysts forecast continued growth although predictions vary. The strategic expansion in sports offerings is designed to attract subscribers and drive revenue, while financial discipline aims to advance profitability by 2025. However, anticipated subscriber declines and falling ad revenues could challenge these projections. Currently trading at US$3.1, the share price closely approaches analyst average price target of US$3.94, suggesting potential misalignment between short-term price movements and long-term earnings expectations.
Examine fuboTV's earnings growth report to understand how analysts expect it to perform.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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