What happened
Shares of sports-centric streaming-TV platform fuboTV (FUBO 1.46%) are skyrocketing again on Monday. The stock was already taking off before today -- inclusive of today's gains, fuboTV stock has doubled in under a month. But the company is gaining greater visibility on Wall Street, and that's helping it make further gains today. As of noon EST, the stock was up a whopping 22%.
So what
For starters, fuboTV CEO David Gandler appeared on the Voices of Wall Street podcast on Friday. He was asked about a range of topics, including the possibility of sporting events exclusive to fuboTV. His muted response was simply, "Everything is always on the table." As the host pushed for a more definite answer, Gandler noted the company is in a quiet period, preventing him from being more forthright. Investors, therefore, are assuming the answer is "yes" and they're celebrating the news.
Image source: Getty Images.
Gandler also made an appearance on CNBC today. While fuboTV can't break news during the quiet period, this appearance can at least expose more investors to the company. It's likely this positive exposure helped the stock make further gains today.
Now what
Investors haven't been given a business update in a while, but they're increasingly bullish on the opportunity. In other words, as people get to know fuboTV's business and understand the industry, they're willing to pay more of a premium price to own the stock. Therefore, fuboTV stock's gains in the past month aren't results driven -- they're valuation driven.
This can happen especially with newly public companies. That's one reason why some investors choose to wait a while before investing in an initial public offering (IPO). Valuations can swing violently both ways, and some prefer to let the initial dust settle.
In fuboTV stock's case, it's blasting higher, and there's no telling when the increasing valuation will peak.
