Why fuboTV Stock Soared in August 2022
Shares of fuboTV (NYSE: FUBO) gained 44.2% in August 2022, according to data from S&P Global Market Intelligence. The sport-focused TV streaming service surged even higher near the middle of the month, peaking at an August gain of 153% in a single-day spike. Here's what drove fuboTV's temporary and longer-lasting gains last month.
2022 roughed up fuboTV's stock in the first seven months. Entering August, share prices were down 91% due to a broad market retreat from high-octane growth stocks with limited bottom-line profits. With a predictable string of negative earnings and free cash flows in the rear-view mirror, fuboTV fits the description of a risky stock. The brutal price cuts in the first half of the year spring-loaded fuboTV's shares for an impressive rebound on the first hint of good news.
A robust earnings report provided that inspiration on Aug. 4. Top-line sales landed at $222 million, 70% above the year-ago period's result. Net losses increased from $0.38 to $0.63 per share. The revenue reading fell short of Wall Street's expectations, but your average analyst was prepared to accept a larger net loss of roughly $0.71 per share. Ad sales increased despite a tough market for ad spots in digital media. fuboTV's global subscriber count increased by 57% year over year, landing at 1.57 million names. The stock closed the next trading session 16.8% higher.
Source Fool.com
