What happened
Shares of fuboTV (FUBO 2.16%) popped today, rising by 15% as of 12:15 p.m. EDT, after the company launched its app on LG Electronics' webOS smart TV platform in the U.S. It's also possible that a short squeeze is amplifying the gains, as fuboTV is heavily shorted.
So what
LG smart TVs that have been released since 2018 can now download the fuboTV app directly to stream sports, news, and entertainment channels. The app supports up to six users within a subscription, and users can record content by series or specific teams. The news is a win for fuboTV, as LG is one of the most popular TV brands in the U.S. with an estimated 12% market share in 2020.
The fuboTV app on an LG smart TV. Image source: LG Electronics.
Additionally, approximately 18% of fuboTV's float was held short as of mid-May as bearish investors bet against the technology company. This year has been hard for short-sellers, who have been targeted by mobs of retail investors and day traders trying to cause short squeezes, where short-sellers frantically buy back the stock to close out their positions. A short squeeze may be contributing to today's pop.
Now what
fuboTV reported first-quarter earnings last month and boosted its guidance for the full year due to momentum in both subscriber and advertising growth. The company expects 2021 revenue in the range of $520 million to $530 million, representing 101% growth at the midpoint, and to have 830,000 to 850,000 subscribers by year's end.
