What happened
Share prices of sports-streaming platform fuboTV (FUBO 5.22%) flew higher on Monday, continuing their recent trajectory. Today's catalyst is likely a result of continuing excitement about first-quarter earnings released on Friday. The company reported Q1 sales of $324.4 million, up 34% year over year and beating the consensus of $303.4 million. The adjusted EPS loss of $0.27 beat the consensus loss of $0.43. Most significantly, company management raised its outlook for the rest of the year. FuboTV stock was up 23% as of 12:30 p.m. ET and is now up nearly 70% from its low last week.
So what
According to TipRanks, Needham analyst Laura Martin released a note over the weekend regarding fuboTV stock. In it, she reportedly reiterated her price target for fuboTV of $3 per share, suggesting around 67% additional upside from where it trades right now. Wedbush analyst Michael Pachter also released guidance on the stock over the weekend, reiterating fuboTV as an outperform and maintaining a $5 price target. That price target would result in a 177% jump over the next 12 to 18 months.
For what it's worth, there's plenty of chatter today that another analyst issued an even better price target of $8 per share for fuboTV stock. However, I couldn't personally find anything to substantiate the claim.
Zooming out from fuboTV, investors may also be digesting news from Dish Network that has implications for the industry. Streaming services have been taking market share from traditional TV providers like cable and satellite, to the benefit of companies like fuboTV. And it seems the trend is continuing based on financial results from Dish Network.
In the first quarter of 2023, reported this morning, Dish Network said that it lost 552,000 pay-TV subscribers -- an acceleration from its losses in the same quarter of last year. While this isn't necessarily bullish for fuboTV, I believe it's fair to say that fuboTV is at least on the right side of the secular trend toward streaming.
Now what
While Dish was losing subscribers, fuboTV was adding -- it added roughly 229,000 net new subscribers in North America just in the past year.
While it's still adding new subscribers at an impressive rate, losses are likewise quite large. In the first quarter of 2023, fuboTV had an operating loss of $81 million. This is a reminder that the company still has a long way to go. And in fact, management isn't even forecasting positive cash flow until 2025. Therefore, shareholders will need to be patient -- most weeks probably won't be as exciting as this one.
