Why fuboTV Stock Soared Today
Shares of live-sports streaming platform fuboTV (NYSE: FUBO) soared on Friday after it reported financial results for the second quarter of 2022 and said it was considering strategic options. fuboTV stock finished the session up an impressive 17%.
In Q2, fuboTV generated revenue of $222 million, up 70% year over year. Subscription average revenue per user (ARPU) was only up a modest 2% from the prior-year period. However, the company made up for modest ARPU growth with robust overall subscriber growth. By the end of the quarter, fuboTV had nearly 1.3 million subscribers worldwide, up 57% from the same quarter last year.
The problem is fuboTV's streaming service by itself is still a negative gross-margin business, doomed to lose money. Management had hoped to remedy this by monetizing its large, growing subscriber base in more ways. And one of those potential revenue streams was sports betting. However, the company said it's exploring "strategic opportunities" to partner with another business in this area.
Source Fool.com
