What happened

Shares of fuboTV (FUBO -3.57%) soared 50.9% in January, according to data provided by S&P Global Market Intelligence. These market-beating gains were mostly fueled by excitement for the company's forthcoming sports-betting platform.

So what

fuboTV believes it can natively integrate sports betting into its sports-streaming service. And in January, it sped up its pursuit of this new revenue stream. It acquired a sportsbook platform and gaming company called Vigtory for an undisclosed amount. It expects the deal to close in the first quarter of this year, with a full launch coming before the end of 2021.

A dollar bill is folded into the shape of an arrow pointing up.

Image source: Getty Images.

There are a range of analyst opinions when it comes to fuboTV's sports betting opportunity, but the deal for Vigtory was largely praised. In fact, after the acquisition was announced, Wedbush raised its price target for fuboTV stock from $40 per share to $50, according to The Fly.

Because Wall Street is divided on fuboTV, it's become a polarizing stock among retail investors. In fact, it has one of the highest levels of short interest on the market. According to Yahoo! Finance, 73% of the stock's float was sold short as of Jan. 15. But retail investors actually gravitated toward stocks like this in January in hopes of sparking a short squeeze. This factor likely helped the stock gain in January as well.  

FUBO Chart

FuboTV stock has crushed the market average over the past year. FUBO data by YCharts.

Now what

Subscriptions to its streaming service are the primary revenue source for fuboTV, but it's a money-losing venture on its own. That's why management is so fervently pursuing more-profitable income streams. For now, that means the company could benefit from cash from another source, and fortunately, it secured some in January.

The company is in the process of offering convertible notes to raise $350 million. And these notes won't come due until 2026. Therefore, fuboTV is now armed with plenty of cash and time to pursue its long-term vision, which should be encouraging to shareholders.