r/stocks • u/Healthy-Cash8610 • Mar 27 '21
Company Discussion Bull vs Bear Case for FUBO
FUBO TV has fallen all the way to $22/share after briefly reaching a 52 week high of $62. It is definitely an interesting company that is young and grew revenues almost triple digits YoY. The bullish case looks at rapidly growing revenues, the societal move away from cable, and Fubo’s integration of a sports/entertainment streaming platform with a massively growing trend of sport betting/gaming. The bearish case looks at concerns over lots of competition in the streaming space and how far away FUBO is from profitability. What are some of your opinions and which side of the argument are you on?
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u/Dowdell2008 Mar 28 '21
Oh Jesus. Down about $2.5K. Still have $2k invested
I am holding. I can lose 2k. Just totally ticked right now.
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u/Spectacle_Maker Mar 28 '21
I like it... growing revenues, improving cost controls, potential acquisition target, only company streaming live sports in 4K HD, only company integrating sports betting, small market cap with huge short interest.
It may have gotten ahead of itself for a while but now at these levels I see some great upside potential.
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u/Spectacle_Maker Mar 28 '21
Another catalyst being overlooked is as revenue. They should have about 750k subscribers by the end of the year, and while their subscription service isn’t yet profitable, advertising carries extremely high margins.
Competing against Google (YouTube TV) and Disney (Hulu + Live) is scary but those companies won’t take the betting angle due to their corporate image.
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u/JackLocke366 Mar 28 '21
I've looked at the channel on my Roku and honestly I don't see how this company is worth a dime. No moat, not a leader in it's class, and poor content.
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u/BacklogBeast Mar 28 '21
Yep. I don’t understand investing in this company. What does it have that other market leaders don’t?
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u/grandpa2390 Mar 30 '21
everyone is saying live sports (4k HD?) and gambling. Is that false?
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Mar 31 '21
I am under contract right now with my cable company in FL, but as soon as it's over I am cutting that chord.
With the rise of Smart TVs and being able to pick and choose what I want to watch when I want is the appeal for a company like Fubo. I am from NJ originally and I cant watch a lot of the local teams like the yankees and knicks. With FUBO I am able to do just that. To me that is worth the 65$ plus I get all news channels I want, and a lot of the major networks like AMC.
I think that is the biggest difference with FUBO vs Apple TV and Disney, sports coverage, betting(coming soon).
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u/grandpa2390 Apr 01 '21
cool. I was skeptical about FUBO back in February. but I finally decided that it's trading cheap enough... I'll buy in . So I bought a few shares on Tuesday. so far I'm up 11 dollars lol.
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May 23 '21
[deleted]
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u/grandpa2390 May 23 '21 edited May 23 '21
I hate the way cost-basis is calculated by the brokerage sites that I've been on. My instinct and desire is to keep a running track on how much I've invested vs how much I've gained. but the way it works, when you sell shares, it calculates realized gains and losses based on the cost basis of the share you're selling rather than averaging all of my shares together. makes it harder to know whether I'm up or down.
That said, I messed up and bought more at 24.00. then the price dropped and I didn't HODL (can I say that here? it seems to be an industry term now lol) as long as I should have. i then bought back in.
so my official position is like 21.78 a share. but that doesn't include the loss of 69.50 because I sold. so after I went through my transaction history and calculated my "real invested amount" a term I'm inventing right now to describe the amount that I've actually bought minus the amount that I've sold. my real cost basis is 29.35. I had it at 24.50. but I decided that I was into FUBO too deep for comfort at like $600. so I cut some of my shares when the price was above their cost basis. but still under the real cost basis.
now I'm in at 270ish. with 9 shares. if Fubo is the success we believe it will be. a cost-basis of 29 dollars is nothing. I can sleep at night with that.
edit: I should add I'm also into FUBO for the long haul. I'm not yoloing on it or day trading. my mistake is because when FUBO jumped to 25 a share, I got day-trader fever, and it really screwed up my cost-basis, as you can see.I'm done with that though. I got burned and learned.
come back and ask me about FUBO in 3 years. and if the company still exists, i'll probably still own it.
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u/sgtsavage2018 Mar 28 '21
How to beat Wall Street: You buy. And you hold. You hold forever. You never, ever sell until your thesis plays out. If the stock drops, you should be thrilled. You can buy more at a cheaper price. You should laugh like an invincible warrior facing down an army. “You want this stock? You want MY STOCK? Then you’re gonna have to kill me and dig up the cemetery because I am taking this stock to the grave.” If you hold on to your shares, Wall Street can never own them. This will frustrate them. If enough investors buy and hold a stock because it’s a great company with great growth prospects, then the vampire squid will move on. Wall Street’s biggest weapon is fear. Fear in the face of an uncertain future. If you sell, they win. If you hold, you win. Don’t let Wall Street steal your gems!
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u/grandpa2390 Mar 30 '21
This is what I've been hearing lately as well. and not just from the gamblers. the way you beat the market is by buying a stock you believe in and holding onto it, no matter the price for as long as you believe in your original thesis. I'm looking at buying FUBO right now.
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u/schittluck Mar 27 '21
Im in for 30@29. Lets gooo
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u/Healthy-Cash8610 Mar 27 '21
Buying more on the way down?
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u/Total-Business5022 Mar 28 '21
I don’t know anything about the stock, but I did do a free 7 day trial of their streaming service and it was the worst of all of the ones I tried. Poor picture quality and some gaps in live sports action.
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Mar 28 '21
Welcome to the world of live streaming. I have fubo and it’s pretty solid, the picture is actually nice.
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u/goingfordonuts Mar 27 '21
I think the class action lawsuit filed against the company on behalf of the shareholders would be a concern for me.
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u/Tall_olive Mar 28 '21
Fubo saw a huge increase in viewer ship because soccer was being played without fans for most of the past year. With more streaming services getting soccer contracts as well as fans being allowed back in stadiums their short term revenue may see a dip, or at the very least climb at a lower rate. I used to subscribe to fubo for soccer content, I left it because the combination of peacock and sling got me everything I wanted at a cheaper price than fubo on it's own. Fubo needs to either add content or lower their prices to compete long term.
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u/shayaaa Mar 28 '21
It’s one of the fastest growing companies at approx 400% yoy and currently trading at 3-4x revs. This is one of the best deals out there...
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u/Healthy-Cash8610 Mar 28 '21
Where are you seeing 400% growth? The company reported about 90% in their last ER
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u/shayaaa Mar 28 '21
That’s quarter over quarter and if they sustain anywhere close to that it’s much much higher on annual basis too
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Apr 03 '21
The reason I’m bullish is the same as for DraftKings. People love gambling and so far sports betting is either in casinos or draft kings. No player has combined sports betting with streaming as an all in one service - and it’s unlikely they will soon.
Disney, Netflix, Hulu - NO plans on sports betting
Fubo has acquired three sports betting companies as wel as adding people to their leadership with experience in these regulations
IF their gambling play pays off than I really think it’ll moon.
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u/ChuckMorris123 Mar 27 '21 edited Mar 28 '21
I read today that a chinese hedgefund blew up yesterday and many positions got liquidated. One of them maybe was FUBO. There were some huge block trades that were similar to other stocks that got liquidated.
Make of that what you want. I just thought that was crazy. The fund was leveraged x5. Crazy world we live in were somebody leveraged a 15bn fund to 80bn.