What happened
Shares of fuboTV (FUBO 1.45%) rallied on Thursday and not for any real fundamental reason. Many of the market's more volatile stocks are soaring today, likely energized by the stimulus package that was just signed by President Joe Biden. As of 3:30 p.m. EST, fuboTV stock was up 12%.
So what
fuboTV stock is still down around 45% from 52-week highs. However, some of its drop relates to a general stock pullback over the last couple weeks. Given that it lost ground for non-fundamental reasons, it's only fair that it gained some of that back today.
Image source: Getty Images.
Of course, fuboTV stock hasn't only fallen in recent months because of exogenous circumstances. When the company reported full-year 2020 results earlier this month, net profits fell far below Wall Street's expectations. And investors are worried about encroaching competition. That said, in 2020 fuboTV delivered in one of the most important areas: subscriber growth. Throughout the year, the company raised its subscriber guidance before finally delivering almost 550,000 by the end of the year.
Now what
So is fuboTV stock temporarily spiking higher today or is it starting a steady climb to retake previous highs? In the short term, I have no idea. As today demonstrates, a stock can rise and fall sharply due to factors outside of the company's control. We can't predict these things.
However, in the long term, if fuboTV can better monetize its growing, engaged user base, then that could lead to higher profits and push the stock higher. Of course, it still has a long way to go, but this doesn't seem like a growth stock that investors should blindly dismiss.
