2 Ways fuboTV Can Bounce Back After the Crash

fuboTV (NYSE: FUBO) shareholders have been taking heavy losses since the highs of 2021. The stock is down a whopping 95.6% since then. It has been caught up in the growth stock sell-off, and it doesn't help that the business is not on stable footing.

The streaming alternative to cable TV is paying too much for content and not charging enough for subscriptions. That choice is causing massive losses in cash from operations. If fuboTV can correct these issues, the stock can bounce back. 

In its most recent quarter, which ended on March 31, fuboTV's subscriber-related expenses (content costs) totaled 102% of revenue. That increased from 95% of revenue in the same quarter the year before. This is despite revenue growing by 102% in that time. Typically, investors like to see a company leverage expenses as sales increase so that over time they consist of a smaller share, thereby expanding profitability. It seems fuboTV is going in the opposite direction.

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Source Fool.com