Shares of fuboTV Soared More Than 100% in a Few Weeks. Why All the Hype?
fuboTV's (NYSE: FUBO) stock has been on fire in the past couple of weeks, more than doubling as it updated investors on its operating results. The sports-centric, livestreaming alternative to cable TV faced pressure to bring costs under control after it reported mounting losses on the bottom line.
Part of the reason the stock has soared in recent weeks is the strategic changes announced during the earnings release on Aug. 4. Let's look at the details from that announcement.
In its letter to shareholders on Aug. 4, management started by acknowledging the market's desire for fuboTV to achieve profitable growth. The company has expanded over the last few years at the cost of incurring significant losses on the bottom line. fuboTV needs to pay owners for the rights to show content to its subscribers. Currently, those expenses are too high for fuboTV to generate profits.
Source Fool.com
