Sports streamer Fubo’s shares are taking a beating after weak guidance
FuboTV shares plunged more than 20% in early trading on Friday after the live sports streamer reported earnings.
Fubo grew to 1.67 million subscribers and posted 8% revenue growth, ending the quarter with $434 million, which was below expectations. It closed the year with a revenue record: $1.59 billion, a 19% increase.
As the “down more than 20%” number shows, investors found plenty not to love in Fubo’s earnings. The streamer’s next quarter revenue guidance, $413 million, was about 6% below expectations. Fubo’s Q4 ad revenue also fell 12% from last year to $34.3 million, to end the year flat.
Last month, Fubo announced plans to merge with Disney’s Hulu + Live TV, a combo that would create the second-largest streaming MVPD (TV channels over the internet) behind Alphabet’s YouTube TV. The deal also closed Fubo’s antitrust litigation against Disney, which sought to derail the company’s now defunct Venu Sports joint venture.
The Fubo-Hulu combo would be 70% controlled by Disney but continue trading as Fubo. Despite Friday’s performance, Fubo shares are still up more than 100% year to date.
As the “down more than 20%” number shows, investors found plenty not to love in Fubo’s earnings. The streamer’s next quarter revenue guidance, $413 million, was about 6% below expectations. Fubo’s Q4 ad revenue also fell 12% from last year to $34.3 million, to end the year flat.
Last month, Fubo announced plans to merge with Disney’s Hulu + Live TV, a combo that would create the second-largest streaming MVPD (TV channels over the internet) behind Alphabet’s YouTube TV. The deal also closed Fubo’s antitrust litigation against Disney, which sought to derail the company’s now defunct Venu Sports joint venture.
The Fubo-Hulu combo would be 70% controlled by Disney but continue trading as Fubo. Despite Friday’s performance, Fubo shares are still up more than 100% year to date.
