FUBO Stock Is Trending as FuboTV Beats Estimates
FuboTV (NYSE:FUBO) stock is trending today after the company reported stronger-than-expected third-quarter results. The company, which offers a sports-focused streaming alternative to cable, also confirmed that it had shut down its gaming and sports betting businesses.
FUBO stock is currently treading slightly in the green, trading at around $3.40 per share. Here’s what investors should know about FUBO stock moving forward.
FUBO Stock and Q3 Results
For the third quarter, FuboTV reported a loss of 52 cents. That’s versus analysts’ average estimate of a loss of 62 cents. Furthermore, the company’s net loss soared to $152.7 million, an increase from $105.9 million in Q3 2021. The company’s revenue jumped 44% year-over-year (YOY) to $225 million as well, $11.5 million above analysts’ average estimate.
What’s more, FuboTV provided Q4 revenue guidance for between $227.5 million and $282.5 million. That’s roughly in-line with analysts’ average estimate of $275.7 million.
Finally, the company had 1.23 million North American subscribers as of the end of the third quarter.
Meanwhile, in its shareholder letter, the company reported that its “advertising business showed increased momentum as the quarter progressed.” FuboTV added that it expects this trend to “continue through the remainder of the year.”
Closing Gambling Operations
On Oct. 17, the streaming TV provider announced that it would immediately terminate its sports betting operations. Today, FuboTV further confirmed that decision. The company also noted that it had closed its Gaming operations, explaining in its letter that it had taken this action in order to meet its “profitability goals.”
That said, the company also noted that it still believes in its gaming business and is seeking “to optimize [its] user base in the gaming space without investing [its] own funds. ”
What do analysts think about this decision?
Last month, Wedbush analyst Michael Pachter said that his optimism about FuboTV’s ability to meet its long-term profitability goals had increased after the company shut down its sports gambling operations. On Sept. 23, Pachter upgraded his rating on FUBO stock to “outperform” from “neutral.”
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On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.