What happened
Investors in sports streaming specialist FuboTV (NYSE: FUBO) were beating the market on Tuesday as the stock had soared 39% by 1 p.m. ET, compared to a 0.3% uptick in the S&P 500. The rally ahead of a company investor day presentation erased just a small portion of the losses that shareholders have seen so far this year, though, and the stock is still down roughly 60% in 2022.
That price slump set the stage for a rally like the one that investors saw on Tuesday. It was also powered by hopes that the management team on Tuesday afternoon would give a brightening outlook.
So what
FuboTV executives are set to make a presentation at the company's annual investor day meeting on Tuesday afternoon.
FuboTV in early August showed solid growth in its live TV streaming platform. Revenue rose 65% in the core U.S. market thanks to higher advertising revenue and an expanding base of paying subscribers.
Now what
Management at the time noted a new focus on cutting costs so that FuboTV can more quickly move toward positive free cash flow. Investors are hoping to hear about progress along those lines in the company's presentation this afternoon.
FuboTV might also update its short-term growth outlook during that presentation. As of early August, executives predicted that slowing user growth in Q2 would give way to accelerating gains this quarter thanks to increasing interest in sports programming. The company needs to show faster subscriber gains, while making moves toward reducing its net losses before most Wall Street pros would warm up to the growth stock.
There might be several more quarters of sluggish earnings results ahead. Management isn't projecting positive free cash flow until 2025, in fact. But speeding up that timeline through more cost cuts or higher prices could push the stock even higher.
10 stocks we like better than fuboTV, Inc.
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and fuboTV, Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
*Stock Advisor returns as of August 11, 2022
Demitri Kalogeropoulos has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends fuboTV, Inc. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
