FuboTV posted remarkably poor earnings, although, at first glance, its revenue growth was impressive. Its stock has fallen 80% this year, and the drop accelerated recently.
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Revenue in the most recent quarter was tiny at $242 million, up 102%. The company lost $141 million. Subscribers in North America were just shy of 1.1 million, higher by 81%. Subscribers outside North America were 305,000, up by 102%. FuboTV is too small to compete in the streaming world, and perhaps too small to survive. Some proof of this was that the company lowered its expectations for North America, which is its largest market.
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FuboTV does not have a niche, as some smaller companies do. As streaming becomes more competitive, FuboTV’s program lineup is not sufficient, which this writer can attest to. And its monthly fees are extremely high.
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In a world in which there are doubts about the growth of giants like Netflix, FuboTV has no way to take meaningful market share.
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As the stock continues to drop further, there is only one question about the company’s future. Will it be bought or will it disappear?
FuboTV Cannot Recover
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Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.
McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.
His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.
A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.
TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.
McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.
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