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My #1 Stock Pick for 2021 is $FUBO
fuboTV Inc. operate a live TV streaming platform for live sports events, news, and entertainment content in Europe & the United States. https://twitter.com/CHASETRDR/status/1345323919406874624
My #1 Stock Pick for 2021 is $FUBO
fuboTV Inc. operate a live TV streaming platform for live sports events, news, and entertainment content in Europe & the United States. https://twitter.com/CHASETRDR/status/1345323919406874624
$FUBO had its IPO in October @ $60 and following volatile price action, this rare growth opportunity is worth keeping an eye on
So the business model...
The $FUBO model is simple: a ~$60 monthly subscription for sports, entertainment & news coverage built into any smart device
So the business model...
The $FUBO model is simple: a ~$60 monthly subscription for sports, entertainment & news coverage built into any smart device
$FUBO recorded Q3 Revs of $61m +47% YoY or +71% excluding 2019 licensing revenue from FaceBank AG, which was aquired in July 2020.
Subscription rev +64% YoY to $53m
advertising revenue +153% YoY to $7.5m
Paid subs grew 58% YoY & totaled 455K at Qrt end which is a +42% QoQ
Subscription rev +64% YoY to $53m
advertising revenue +153% YoY to $7.5m
Paid subs grew 58% YoY & totaled 455K at Qrt end which is a +42% QoQ
Growth is evident and that trend is likely to continue as S&P Global analysts put 2025 revenue at $1.85B that's a ~34% increase per year for the next 5 years
MNGT expects Q4 subscriber growth at 500-510K, a 58% increase YoY and Q4 revenue at $80-85m
MNGT expects Q4 subscriber growth at 500-510K, a 58% increase YoY and Q4 revenue at $80-85m
$FUBO's balance sheet is alright for a company still in it's early growth phase
As of 30/09/20 $FUBO holds $508.9m equity, $41.5m debt & $38.8m cash
The company has less than one years of cash runaway, so it's very likely that they will take on debt and/or capital raise to
As of 30/09/20 $FUBO holds $508.9m equity, $41.5m debt & $38.8m cash
The company has less than one years of cash runaway, so it's very likely that they will take on debt and/or capital raise to
service expenditure. But this is easily covered by long term/other assets ($746m) - dilution risk nonetheless
with operating margin of -145% mngt has a lot of ground to cover especially in 2021
Mngt has outlined a few pathways forward for margin improvement
with operating margin of -145% mngt has a lot of ground to cover especially in 2021
Mngt has outlined a few pathways forward for margin improvement
In the Q3 shareholder meeting mngt stated:
"We expect margin improvement to cont over time, aided by growth of advertising on our platform along with strong attachment rates on value-added services, such as cloud DVR storage & streaming on multiple devices"
"We expect margin improvement to cont over time, aided by growth of advertising on our platform along with strong attachment rates on value-added services, such as cloud DVR storage & streaming on multiple devices"
Further, sports betting will be a key driver of growth over the next few years through the FaceBank Nexway merger
If executed correctly $FUBO will implement free-to-play fantasy league & then sport betting which can all be done through fuboTV via FaceBank API
If executed correctly $FUBO will implement free-to-play fantasy league & then sport betting which can all be done through fuboTV via FaceBank API
So...what is a fair price? 
Below is a 2 stage Discounted Cash Flow of $FUBO done by S&P Global advisors putting fair value @ $167.37 up to 2025 earnings; a 83% discount to fair value
$FUBO closed Friday @ $28 after some wicked sell side saw it close near the lows
Below is a 2 stage Discounted Cash Flow of $FUBO done by S&P Global advisors putting fair value @ $167.37 up to 2025 earnings; a 83% discount to fair value
$FUBO closed Friday @ $28 after some wicked sell side saw it close near the lows
Waiting for a support base to form before jumping on the long train is prudent
Timing an entry is near impossible so scalling into a position will require conviction and patience
If Management can achieve 2021 revenue goals of ~$442m (EPS -1.92)
$50-$55 can trade by December
Timing an entry is near impossible so scalling into a position will require conviction and patience
If Management can achieve 2021 revenue goals of ~$442m (EPS -1.92)
$50-$55 can trade by December
Plenty of risk still exist with this name 
+ lockdowns/covid
+ shareholder dilution
+ lack of competitive advantage
+ larger competitors exist
+ market saturation
+ lockdowns/covid
+ shareholder dilution
+ lack of competitive advantage
+ larger competitors exist
+ market saturation
