What happened
Shares of fuboTV (FUBO 0.72%) rose 105.3% in November, according to data from S&P Global Market Intelligence. The sports-focused streaming company's stock climbed following better-than-expected third-quarter earnings and continued to gain ground with the help of market momentum and favorable coverage from analysts.
Fubo published Q3 results on Nov. 10, pairing strong sales growth in the period with raised forward guidance. The streaming specialist completed its initial public offering on Oct. 13, and strong quarterly performance and an increased full-year sales target helped the stock post explosive gains last month.
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So what
FuboTV reported sales of $61.2 million in the third quarter, up more than 71% year over year after factoring out the contribution from the FaceBank AG business that the company sold in July. Streaming subscription revenue climbed 64% year over year to reach $53.4 million, and the company closed out the quarter with 455,000 streaming subscribers -- up 58% compared to the end of the prior-year period. Advertising revenue in the quarter climbed 153% year over year to reach $7.5 million.
With the company showing strong momentum with its Q3 results, the stock received bullish coverage from analysts and rallied in November.
Now what
FuboTV stock has continued to climb in December. The company's share price is up roughly 4.7% in the month so far.
Fubo announced on Dec. 1 that it had acquired Balto Sports, an online sports betting company. Terms of the deal have yet to be announced, but subsequent gains for the streaming stock suggest that investors are excited about the acquisition. The company had previously said it would be making a play in the sports-betting space.
FuboTV now expects fourth-quarter sales to come in between $80 million and $85 million, representing growth of 55.5% year over year at the midpoint of the target. Full-year sales are projected to be between $244 million and $248 million (up roughly 65% year over year), and 2021 revenue is expected to come in between $415 million and $435 million -- good for growth of roughly 70%.
FuboTV has a market capitalization of roughly $1.8 billion and is valued at approximately 7.3 times this year's expected sales.
