Analyst Finds A Cheaper Way To Invest In Streaming Wars - Looks To Fubo Amid Recent Data

Needham analyst Laura Martin reiterated a Buy on fuboTV Inc FUBO and a $7 price target. FUBO pre-released several 3Q22 metrics this week. 

Martin raised her revenue estimate for 3Q22 by 3% to $216.2 million (up 38% Y/Y). Martin boosted the estimate for Adjusted EBITDA Loss by 8% to a loss of $100.1 million (down 23% Y/Y). 

She raised the EPS loss forecast by 7% to $0.80 (down 7% Y/Y).

On October 17, FUBO issued preliminary 3Q22 results for revenues, subscribers, and Adjusted EBITDA Loss. FUBO announced that it expects to close 3Q22 with North American revenue of at least $210 million and paid subscribers of at least 1.22 million.

Additionally, FUBO announced that it expects ROW revenue to be at least $5.5 million and paid subscribers of 350K.

FUBO expects an Adjusted EBITDA Loss of approximately $100 million in 3Q22, better than expected, as it shuttered its sportsbook.

She raised her 3Q22 and FY22 revenue, EBITDA, and EPS estimates for FUBO.

Martin raised her FY22 estimates for revenue to $953.7 million (up 49% Y/Y and 1% above her previous estimate), Adjusted EBITDA Loss to $387.3 million (down 50% Y/Y and 3% above her last estimate), and EPS Loss to $3.24 (down 17% Y/Y and 2% better than her previous estimate).

She maintained her estimates for FY23 of revenue of $1.4 billion (up 45% Y/Y), Adj EBITDA Loss of $231.1 million (up 40% Y/Y), and EPS Loss of $2.07 (up 36% Y/Y).

FUBO is an inexpensive way for public investors to participate in the US consumer shift toward OTT and Streaming TV, Martin noted.

She was most excited about high-margin add-on new revenue streams such as up-sells, advertising, and channel fees. 

Price Action: FUBO shares traded lower by 8.86% at $3.76 on the last check Wednesday.