DIS - fuboTV: The New JV Can Deal A KO Punch Downgrading To Hold
2024-02-09 11:57:50 ET
Summary
- The formation of a joint venture between Disney, Fox, and Warner poses a major threat to fuboTV Inc.'s position in the sports streaming market.
- The new streaming service is expected to offer access to a wide range of popular sports events, potentially undercutting fuboTV's pricing.
- In my opinion, fuboTV needs to rebrand itself as more than just a sports streaming platform to differentiate itself from the upcoming competition.
- fuboTV is far from being expensively valued in the market, but as I discuss in this analysis, investors need to prepare themselves for a rough few months.
I have been bullish on fuboTV Inc. ( FUBO ) for quite some time. As an investor with a primary focus on the small-cap space, I am comfortable taking on the risks associated with small companies that are yet to enjoy durable competitive advantages. Last July, after acknowledging the risks facing fuboTV, I assigned FUBO stock a price target of $7.29 based on a DCF model with conservative assumptions for growth. Last November, I claimed that fuboTV was in better shape than ever to achieve its 2025 cash flow goals....
fuboTV: The New JV Can Deal A KO Punch, Downgrading To Hold