Send me real-time posts from this site at my email
Motley Fool

Why fuboTV Stock Jumped 9% Today

What happened

After sports programming-focused streaming service fuboTV (NYSE: FUBO) started trading publicly last fall, shares rocketed up more than 400%. Subsequent negative analyst opinions led to a drop of more than 60%, before a rebound up 70% in the last two weeks.

Today, shares jumped almost 20% before settling back to a gain of about 9% to end the day.

So what

The rebound over the past two weeks began after the company announced plans to acquire interactive gaming company Vigtory, and said it expects to launch a sportsbook by the end of 2021. The boost today came without any specific news from the company, but after a Bank of America analyst provided a strong opinion on the growth of streaming television in a positive opinion about streaming platform Roku (NASDAQ: ROKU).

Image source: fuboTV.

Now what

Some of the sharpest negative sentiment on Fubo's stock came after the valuation climbed from excitement around integrating sports betting into the streaming service's offerings. A recent bottom in the share price came when the company announced it plans to open a sportsbook before the end of the year, after its Vigtory acquisition was announced on Jan. 12.

The main point of the Bank of America note on Roku was the expectation of a continued move toward streaming television subscriptions, with still a long runway ahead. This also bodes well for fuboTV, and a continuation of the strong 58% year-over-year subscriber growth it reported for the quarter ended Sept. 30.

fuboTV still has to grow into its current valuation, but if streaming trends continue, and it successfully enters sports betting, there should still be more growth to come.

10 stocks we like better than fuboTV, Inc.
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and fuboTV, Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

*Stock Advisor returns as of November 20, 2020

Howard Smith owns shares of Roku. The Motley Fool owns shares of and recommends Roku. The Motley Fool recommends fuboTV, Inc. The Motley Fool has a disclosure policy.


Source

Popular posts

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue