FuboTV (NYSE:FUBO) announced preliminary Q3 numbers on October 17 that came ahead of management’s expectations. The solid Q3 numbers highlight the company’s ability to drive subscriber growth and revenue even amid challenges, indicating that the company could navigate the current crisis with ease. However, macro weakness and cost headwinds could limit the upside in FUBO stock in the near term.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
For Q3, FUBO expects to report revenues of $210 million in NA (North America), up 34% year-over-year and higher than its prior forecast of $200-$205 million. As for the ROW (Rest of World), revenues are expected to be $5.5 million, within its earlier guidance range of $5-6 million.
Its paid subscribers in NA are expected to exceed 1,220,000 in Q3, compared to its previous guidance of 1,135,000-1,155,000. Following the announcement, FUBO stock gained about 10% in after-hours trading.
Notably, FUBO offers a sports-first live TV streaming platform. Its stock has declined about 74% year-to-date due to the macro weakness and increase in content costs. FUBO expects to report a negative adjusted EBITDA of $100 million in Q3, which indicates a further widening of the losses. This could limit the recovery in FuboTV stock in the short term. FUBO will report its Q3 results on November 4.
What is the Prediction for FUBO Stock?
Wall Street analysts are cautiously optimistic about FuboTV stock. It has received three Buy and four Hold recommendations for a Moderate Buy consensus rating. Meanwhile, analysts’ average price target of $6.25 implies 54.3% upside potential.
FUBO stock has a positive signal from hedge fund managers, who bought 127.2K shares last quarter. However, 0.9% of investors holding portfolios on TipRanks reduced their exposure to FuboTV stock in the last 30 days.
Overall, on TipRanks, FUBO stock sports a Neutral Smart Score of six out of 10.
