Are FuboTV's Ambitious Goals for Subscriber Growth and ARPU Expansion Too Optimistic? This Analyst Exercises Caution

Barrington analyst James Goss has reiterated a Hold rating on FuboTV Inc FUBO.

The analyst supports the overall thesis on FuboTV, including aggressive subscriber acquisitions, expanding ARPU, and complementing its significant sports emphasis with a move into related gaming in its footprint.

 Still, uncertainty over the time frame necessary to realize these ambitions led to a cautious stance on the stock. 

Demonstration of progress toward achieving its aim to be free cash flow positive by 2025 would be very encouraging.

FuboTV is creating a platform to provide a new and improved version of the traditional cable bundle. 

While originating with a sports-first orientation, the FuboTV service has always aspired to be an enhanced version of a cable bundle with several key advantages. 

As with cable, the FuboTV service begins from the point of view of a content aggregator, suggesting that bundling provides the most profitable and attractive path toward monetizing its aggregated content. 

Efforts at personalization can allow for tailored highlighting of offerings and potentially improve engagement and subscriber unit economics. 

Goss projects Q4 revenue and EPS of $319.3 million vs. consensus $396.5 million and $(0.22) vs. consensus $(0.31).

Also Read: FuboTV's Subscription And Ad Revenue Soar, But Analyst Cautious Amid Decelerating Q4 Growth

Price Action: FUBO shares traded higher by 13% at $2.87 on the last check Tuesday.