Barrington analyst, James Goss, has reiterated a Hold rating on FuboTV Inc (FUBO).
The analyst acknowledges FuboTV’s aggressive subscriber acquisitions, expanding average revenue per user (ARPU), and the addition of gaming to its sports-focused platform. However, the uncertain timeline for these ambitions has led to a cautious stance on the stock.
Goss emphasizes that demonstrating progress towards the aim of being free cash flow positive by 2025 would be highly encouraging.
FuboTV aspires to enhance the traditional cable bundle and, although rooted in a sports-first approach, seeks to provide several advantages over standard cable services.
Similar to cable services, FuboTV begins as a content aggregator, emphasizing the profitability of bundling content. Personalization efforts aim to improve engagement and subscriber unit economics through tailored content offerings.
Goss projects Q4 revenue and EPS of $319.3 million vs. consensus $396.5 million and $(0.22) vs. consensus $(0.31).
Also Read: FuboTV’s Subscription And Ad Revenue Soar, But Analyst Cautious Amid Decelerating Q4 Growth
Price Action: FUBO shares traded higher by 13% at $2.87 on the last check Tuesday.