The ancient axiom of ascending must descend, which is now particularly suitable for fuboTV (Fubao). The sports-focused streaming media platform was out of control after its public debut in October, and its stock price has risen more than five times in just over two months.
However, in the past 7 days, the stock has returned 37% of its earnings to the market. After such an incredible skyrocket, a sell-off can only be expected, but the dump is particularly noticeable.
However, an analyst believes that lower stock prices may provide new investors with an opportunity to enter FUBO at a cheap price.
Darren Aftahi, an analyst at Roth Capital, rated the stock as “buy”
“We believe that FUBO is still one of the best ways for investors to gain tangential dynamics, and continues to be supported by the recent SVOD price increase of SVOD (Netflix (NFLX-NC) and Disney+ (DISNC). In recent months), “Five-star analyst said. “We believe that the overall market trend of thread cutting and FUBO’s growth plan should lead to higher user prospects in 1H21.”
According to Antenna’s latest market research, FUBO has been grabbing market share from the larger vMVPD (Virtual Multi-Channel Video Program Distributors) such as Hulu and YouTube TV. Its market share increased by 100 and 200 basis points in October and November, respectively.
Although Aftahi’s estimate of total users in FY21 was 685,000, it remained the same, but promising data led analysts to increase its estimate of sub-users in FY22 by approximately 2% to approximately 910,000.
There may be other upward momentum. Possible catalysts include the recent threat of further lock-in caused by Covid, which may increase the loss of submarines/extreme players, and FUBO’s plan to provide game features for free in FY21 “brings longer-term selectivity to its model. “.
In general, FUBO is based on the consensus of analysts to buy moderately, based on 6 buys and 1 hold and sell. The stock price is $38.74, and the average price target is $36.13, which means there is 7% room for downside. However, as Aftahi’s comments indicate, the potential here may be much better than when first seen. It should also be noted that FUBO received a smart score of 10 points on TipRanks. (See FUBO stock analysis on TipRanks)
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Disclaimer: The views expressed in this article are only those of the analyst. The content is for reference only. Before making any investment, it is very important to conduct your own analysis.