Shares of fuboTV (FUBO 2.24%), provider of a sports-focused live streaming service, soared on Monday. The stock finished the trading day about 13% higher than where it traded at the end of last week. The move higher extends a bullish run recently. Shares of the growth stock are up 77% over the past 30 days.
The stock's move on Monday came as fuboTV announced that its streaming channel would now be available on LG Smart TVs in the United States. The partnership adds to fuboTV's notable business momentum recently, including strong subscriber growth and new content agreements. fuboTV's rapid and consistent execution continues to challenge one bear case against the company, which argues that the company may not have a meaningful competitive advantage since it's primarily just aggregating content.
Image source: fuboTV.
fuboTV's latest move
"LG Electronics announced the launch today of the fuboTV app on its webOS Smart TVs (2018-2021 models) in the U.S.," fuboTV said in a press release on Monday, "including its award-winning, best-in-class LG OLED TV lineup."
LG smart TVs operate on an in-house developed smart TV platform called webOS. Bringing fuboTV to the platform not only expands fuboTV's addressable market but it enhances the value proposition for LG Smart TVs, as fuboTV is the fastest-growing live streaming TV service.
Non-stop innovation
It's not surprising to see LG's webOS getting on board with fuboTV. The sports-first streaming TV service has been taking market share from competitors. Indeed, it was likely one of the only live TV streaming services that actually grew sequentially in Q1 -- a period that usually sees weakness due to seasonality.
fuboTV's first-quarter revenue soared $135% year over year as subscribers increased 105% year over year. Advertising revenue skyrocketed 206% over this same time frame.
"We believe they are choosing fuboTV, enticed by superior value, our year-round content offerings and a customer-centric, innovative consumer product experience relative to legacy pay TV (cable/satellite/telco)," explained fuboTV co-founder and CEO David Gandler in the company's first-quarter earnings release. "We see this trend continuing to accelerate as more consumers discover they can cut the cord without losing access to the sports teams, live channels and content they love."
Other important developments from fuboTV this year include the acquisition of sports betting and interactive gaming company Vigtory; the launch of its own branded content studio; and an original programming slate for the Qatar World Cup 2022 Qualifying matches for South American Football Confederation.
Given fuboTV's recent market share gains, its soaring ad revenue growth, and its ability to land key partnerships and make strategic acquisitions, it may not be long before this streaming service carves out a meaningful moat for itself.
