In case you’re holding Fubo stock, August 2022 was an excellent month for you, at least in the financial sense of the word. Although the stock wasn’t performing so well at the beginning of the year, August can be seen as a surprising change in the narrative that began with a steep jump in its value which had almost doubled in the process.
So what’s going on, and why should you care? Let’s delve into the subject matter and pinpoint the causes.
A brief introduction to Fubo
Fubo has a stake in multiple industries. Some of you may know it from the streaming services it provides under the umbrella of FuboTV. The television content is mainly focused on live sports. At the same time, Fubo is also a popular sportsbook with free bet no deposit bonus available to every new player who wants to take advantage of it. This service meshes well with the live streaming aspect of the company’s operations.
A boost in value thanks to the live sports platform
Ever since the introduction of its live sports platform, Fubo has steadily been gaining market share. The platform can be described as a massive fan service catering to every sports enthusiast and featuring over 200 channels you can tune in to on-demand, with plenty of content suitable for all tastes and preferences.
Stock traders now have their eyes peeled
Although hardly anyone was paying any attention to Fubo stock before August 2022, the 76% jump in its value has once again placed it on the trader’s radar. As is typically the case in such scenarios, the fear of missing out (or FOMO for short) was the underlying theme while the stock was peaking, with everybody wanting to get in as quickly as possible.
Fubo is competing with some of the greats
Competing with the likes of YouTube TV and Hulu, it’s hard to secure one’s market share, yet FuboTV is seeing a fair amount of success doing it. While the former two have massive subscriber counts that range between 4-5 million, FuboTV still managed to rack up an impressive number of 1.3 million subscribers somehow, which can be quite demanding in this industry.
It’s hard to turn a profit from live streaming
Live streaming services often struggle to turn a profit due to the rising carriage rights of the channels on offer. In practice, this translates to constant pressure from the viewers’ end to keep offering a particular channel that enjoys high levels of popularity; otherwise, you risk losing your viewers who are likely to flock to one of your competitors. The big-name streaming providers can take a hit every once in a while, but most, if not all, of Fubo’s proverbial chips are placed on offering live TV streaming services, so keeping their viewers happy is the top priority.
The company revenue is up
Fubo’s revenue increased to $221.9m, and its North American subscriber base is up 41% compared to its year-to-year performance. The growth is particularly apparent when placed side-by-side with Hulu, the company that recorded a mere 8% of user base growth in the same period of time. All the while, FuboTV has also been bringing in impressive viewership numbers on an international level.
FuboTV’s average monthly revenue per user
An average North American viewer is paying $64.51 every month to be able to use the live streaming platform, which makes for a roughly 2% increase compared to the averages recorded in the previous year. On top of that, Fubo generates an average of $7.25 per month for every viewer.
A unique market proposition
Unlike a typical sportsbook, Fubo offers a combination of live streaming and sports betting within the scope of the same ecosystem, which is a rare sight in the US. Due to the challenging legislative environment, Fubo is currently operational in two US states.
If you’ve laid your eyes on the Fubo stock but are concerned that the hype may be over, there is a chance that the company will seek new strategic partnerships, which could present other growth opportunities further down the line. As always, do your research before investing, and keep in mind that no one can predict where the market may be headed.
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