Why FuboTV (FUBO) Crashed 30% Recently

Insider Monkey
03-08

FuboTV (FUBO) stock crashed 30% since February 24th. The bulk of the decline happened after the company provided lower-than-expected first-quarter revenue guidance  and predicted that is subscriber base would fall during the current quarter.

Moreover, FUBO delivered mixed Q4 results.

A Q1 Guidance Miss and an Underwhelming Subscription Outlook

FUBO provided Q1 revenue guidance of   $407.5 million to $418.5 million,  well below analysts' average outlook of  $436.9 million.

Further, Fubo predicted that its subscriber base will come in at 1.430 million to 1.460 million as of the end of the current quarter. At the midpoint of the guidance range, that would represent a drop of 4% versus the same period a year earlier. Also noteworthy is that Fubo's  paid subscriber base outside of North America tumbled almost 11% year-over-year in Q4 to 362,000.

Fubo's Q4 per-share loss, excluding certain items, came in at 2 cents, significantly better than analysts' average estimate of a per-share loss of 11 cents. However, it generated $431.8 million of revenue during the quarter, meaningfully below the average estimate of $445.2 million.

While we acknowledge the potential of FUBO as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than FUBO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock

Disclosure: None. This article is originally published at Insider Monkey.

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