FuboTV Inc. (FUBO) online site has grown more than 335 percent since its IPO a few months earlier. The interest of investors can be attributed to the steady return of sports tournaments, which make up much of the output of fuboTV at present. Furthermore, investors from Wall Street have started paying attention to the stock of the firm.
On December 23, BMO Capital Markets analysts revised their “Outperform” rating to “Market Perform” for shares in fuboTV but increased the target price from $33 to $50. On the other hand, Nedham analysts reiterated their “Buy” rating increasing target price to $60 which previously was $30.
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As sporting tournaments were cancelled due to the pandemic, the past year has been tough for fuboTV, and the organization just didn’t have new content. Football play, however, resumed in the fall in the United States, and several sports leagues are still having tournaments.
Through offering tickets to watch sporting matches, fuboTV is monetized. The rate is $60 a month for this package, which is more costly than subscribing to certain streaming platforms.
Sports enthusiasts, however, use fuboTV to access 90% of National Football League matches, all National Hockey League matches, 88% of Major League Baseball matches, and 70% of National Basketball Association matches. Included with the subscription are also several luxury sports networks.
FuboTV had 455,000 paying customers at the end of the third quarter of 2020, a year-on-year rise of 58 per cent. In the third quarter, subscription revenue was up 64 percent year-over-year to $53 million. That is, the audience for fuboTV is increasingly growing.
As there is now a high demand in subscription content, fuboTV works in a favorable climate. The policy of broadcasting only sports remains dangerous, but sports are still in demand by a multi-million group of paying customers amid the drop in popularity. The optimistic future for fuboTV is helped by this. The group, however, is already working on the future and diversifying broadcasting, introducing numerous genre networks.
fuboTV Inc. (FUBO) was down -0.51% to $38.74 in the Tuesday trading.