FuboTV Shares Surge On Updated Guidance: What Investors Should Know

FuboTV Shares Surge On Updated Guidance: What Investors Should Know

One of the hottest stocks in December was FuboTV, a live TV streaming provider. The company saw its stock fall recently on valuation concerns and short-sellers activity.

FuboTV issued updated guidance Tuesday, sending shares higher. 

What Happened: New preliminary fourth-quarter figures were released by FuboTV Inc FUBO

The company sees fourth-quarter revenue hitting a range of $94-$98 million. This represents year-over-year growth of 77%-84% and comes in higher than the previous guided range of $80-$85 million.

FuboTV said it expects to end the last fiscal year with more than 545,000 subscribers, representing year-over-year growth of 72%. The prior guidance for subscribers was a range of 500,000 to 510,000.

Why It’s Important: Shares of FuboTV were on a tear after the company uplisted to the NYSE. The stock gained over 500% before falling in late December.

The company's lockup period ended Dec. 30, which released over 88 million shares, more than triple the previous float.

“In 2021, we will continue to be laser-focused on executing our growth strategies, which include continuing to grow advertising revenues, working to implement sports wagering into our product and further establishing fuboTV as a leader in sports and live streaming,” the company said in a statement.

What's Next: Third-quarter revenue was $61.2 million, a 47% year-over-year jump for the company. The company ended the third quarter with 455,000 paid subscribers, up 58% year-over-year. 

FuboTV is expected to announce fourth-quarter earnings in late January or early February. Revenue and subsriber growth for the fourth quarter could beat the third-quarter figures. Shares of FuboTV jumped 20% after the third-quarter figures were reported. 

FUBO Price Action: Shares of FuboTV were up 21.67% at $29.48 at last check Tuesday.

© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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