Put another in the earnings column for FUBO stock
After fuboTV (NYSE:FUBO) released its second quarter results this month, I wrote in this space that I continue to have high hopes for FUBO stocks.
The New York-based streaming TV service was coming off an excellent earnings report, but I was more impressed with the company’s plan to expand its sportsbook offerings.
“The company must continue to expand its presence in sports betting in the United States,” I wrote on August 13. “If so, then the sky is the limit for this growth stock.”
It should come as no surprise then that FUBO stock had a big boom recently when the company made an announcement to this end.
Overall, FUBO stock is now up nearly 17% since early June. And as Wall Street gets closer to the fourth quarter, I think it’s just beginning.
Latest announcement from FuboTV
The reason fuboTV jumped nearly 6% on August 31 was its latest sportsbook revelation. FuboTV said the state of Iowa has approved a license for Fubo Gaming to offer early deposit online betting in the state. Fubo Gaming, of course, is a subsidiary of fuboTV.
The license was granted in partnership with Casino Queen, which operates a river casino in Marquette, Iowa. Fubo Gaming President Scott Butera explained:
“As we enter the mobile sports betting market, we couldn’t be more excited to launch this trip to Iowa. We thank the IRGC and Casino Queen for being the perfect partner to help us cross the goal line and bring this bookie to the sports fans in Iowa. We believe that Fubo Sportsbook will deliver a high sports entertainment experience that will bring increased interaction and engagement between sports viewing and betting.
Collectively, Iowa is the fifth state where fuboTV has entered into market access agreements for its new sports betting site, joining Arizona, Pennsylvania, Indiana and New Jersey.
Additionally, what makes the FUBO share particularly interesting are the company’s plans for its sports betting.
As a streaming entertainment provider, fuboTV emphasizes live sports. This includes streaming of international football, tennis, golf, and major US sports leagues. In fact, it broadcasts over 50,000 live sporting events each year.
In addition, its audience is growing rapidly. According to the company’s second quarter earnings report, fuboTV added 91,291 new net users, ending the quarter with 681,721 subscribers. These users watched 245 million hours of content, which is 148% growth from the previous year.
In addition, the company achieved sales of $ 130.9 million, an increase of 196% from the previous year.
FuboTV plans to reach 810,000 to 820,000 subscribers by the end of the third quarter, and add 100,000 by the end of 2021.
Of course, there are other streaming services that are bigger than fuboTV. But what they cannot offer is the possibility of exploiting a bookmaker on the sporting events that it broadcasts.
That said, FuboTV can.
In fact, it plans to fully integrate its betting platform with its live streaming service. This will give users what the company calls “a seamless viewing and betting experience.”
Imagine: FuboTV viewers will be able to use the yet to launch Fubo Sportsbook to view odds and place bets on the same screen where they watch the game.
As of today, the sports betting platform would only be available in the five states where fuboTV is licensed. But as the business expands its betting footprint, the business should see an instant impact on its revenue.
The bottom line for FUBO Stock
Right now, FUBO stock is trading at $ 28.38 per share, which is about half of the top of its 52-week range. But when sports betting goes live later this year, the current prices can be seen as a bargain.
The FUBO share has a “B” rating in my Portfolio filing cabinet right now with a buy recommendation.
As of the publication date, neither Louis Navellier nor the InvestorPlace research staff member primarily responsible for this article held (directly or indirectly) positions in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to the publication guidelines of InvestorPlace.com.
Louis Navellier, who has been called “one of the most important fund managers of our time”, broke the silence in this shocking “say it all” video … exposing one of the most shocking events in history of our country… and whoever moves every American must do today.