FuboTV skyrockets over 40% as path to profitability emerges

Fubo (NYSE: FUBO) shares were up as much as 86% at one point on August 16, while it finished the trading day up by 44.95%.

Throughout their investor presentations, the firm highlighted a path to profitability that had investors excited about the prospect the company is facing in the future.

Chief Financial Officer John Janedis stated that profitability and positive cash flow will come about in 2025.

“We continue to work towards long-term targets of adjusted EBITDA profitability and positive cash flow in 2025, and the Fubo flywheel will help us track towards that goal, as we execute a plan of controlled growth, alongside margin expansion.”

FUBO chart and analysis

Regardless of the recent runup, the long-term trend is still neutral, while the short-term trend is positive, so the stock is getting more attention from investors. In the last month, FUBO has been trading in a wide range from $2.35 to $8.14.

Furthermore, the technical analysis shows that FUBO does not offer a high-quality setup at the moment given that prices have been extended to the upside lately. For a solid entry, it is better to wait for some consolidation.

Meanwhile, TipRanks analysts rate the shares a ‘moderate buy’, predicting that the average price the stock could reach in the next 12 months is $5, -21.26% lower from the current trading price of $6.35.

On the radar

Fubo got on the investor’s radar last week following reports on how the company might proceed with its sportsbook endeavors, showing a path to profitability and a sustainable future.

The strength of the recent rally will be tested in the coming days as investors digest the earnings release and investor presentations for more details. 

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