How Low Can Fubo Stock Go?
It's hard to get excited about fuboTV (NYSE: FUBO) these days. Shares of the sports-centric streaming TV platform are trading 59% lower this year. The return gets even worse if you stretch the starting line back to when Fubo briefly traded above $60 near the end of 2020 when investors rallied around the service's ambitions to tap into the sports gambling market. Fubo has plummeted 98% from its all-time high.
Even bulls are losing their enthusiasm. Laura Martin at Needham slashed her price target on the shares from $3 to $2 on Friday. A serious competitive threat awaiting later this year finds the analyst lowering her bottom-line outlook on the expectation of higher marketing costs for Fubo to stand out in the future. She's sticking to her bullish buy rating, but there isn't a lot of wiggle room between where the stock is now and zero, as it trades for a little more than a buck these days.
Let's start with the good news. Fubo's popularity is still growing. The 1.5 million North American subscribers it had on its books at the end of March may be a sequential dip from the 1.6 million it was entertaining when the year began, but this is a seasonal business. Subscriber counts typically slide sequentially in the first and second quarters before picking back up in the latter half of the year. The more popular sporting events tend to take place in the summer and fall quarters.
Source Fool.com
