The stock of sports-streaming favorite FuboTV (NYSE: FUBO) dropped just under 9% in Wednesday premarket trading, after announcing a mixed set of earnings in Tuesday after-hours. To investors' dismay, the streaming platform saw a significant sell-off amidst beating estimates for subscribers.
The company managed to add an extra 262,884 subscribers in September, ending Q3 with a total of 944,605 subscribers – thrashing analyst predictions of 817,000 subscribers and leaving investors confident for a rally.
Albeit, if subscribers were the key driving force behind Fubo’s success, we wouldn’t have seen the sell-off that investors woke up to this morning. Unfortunately for the company, the loss in EPS was bigger than expected. Wall Street predictions backed a loss of $0.61 per share with revenue of $143.5M, yet the earnings posted showed a $0.74 loss per share on sales with a revenue of $156.7M.
Furthermore, while the company improved losses to $105.9M from $274.1M in Q3 2020, the loss was still more than analysts expected to see, sparking the 8% stock sell-off.
Edgar Bronfman Jr, FuboTV’s Executive Chairman focuses on the growth in subscribers:
“The one million subscriber milestone represents an exciting inflection point in our business, with tremendous implications for revenue growth and profitability, particularly given the continued strength of our advertising business”
FuboTV is currently showing a premarket loss of 9.3%, yet still boasts an annual gain of more than 126%. The company has a strong ethic of growth, with their recent acquisition of the popular French live-tv streaming service Molotov SAS proving another step forward for the ambitious company following a deal with AT&T in October. Investors looking to get in on FuboTV may find an opportunity in today’s dip, as the price continues to rest around the $30 resistance level.
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