I’m a cord-cutter.
That means I have stopped paying for cable television.
I rely completely on streaming services like Amazon Prime, Hulu and Disney+.
My decision to cut the cord came down to a couple of reasons:
- I want to watch what I want when I want.
- In my opinion, live television programming isn’t very good quality.
- I was tired of spending money for something I never used.
I’m not alone in exiling myself from cable TV.
According to research firm MoffettNathanson, 6.2% of Americans cut the cord in the third quarter of 2022 — the highest decline of pay TV subscriber growth in the last decade.
But with our Stock Power Ratings system, you can see that, while cord-cutting is popular, some streaming stocks are not.
Increase in Cord-Cutting Doesn’t Benefit Every Streaming Stock
One stock that has not benefitted from the cord-cutting trend is fuboTV Inc. (NYSE: FUBO).
Our system helps you see the real story behind a company.
fuboTV was founded in 2009 as a sports-first, live TV streaming company.
fuboTV subscribers get access to sporting events around the world, like Premier League soccer, NFL, NASCAR and PGA Tour golf.
Despite its 1.23 million subscribers, the company’s stock has performed poorly over the last 12 months.
FUBO stock scores a “Bearish” 23 out of 100 on our Stock Power Ratings system. We expect it to underperform the broader market over the next 12 months.
FUBO Stock: Subpar Growth + Poor Quality
I love to highlight a company’s positive company financials.
FUBO, on the other hand, has struggled:
- In its most recent quarterly report, the company reported a net loss of $152.7 million.
- Its net loss margin fell to negative 67.9% for the quarter — meaning the company dug its revenue hole even deeper.
That shows why FUBO scores a 35 on growth.
The stock really gets hammered on our quality factor … where it scores a horrible 13.
FUBO’s return on equity is negative 97.5%. Its peers average negative 22.9%.
The company’s net margin is negative 56.7% and its operating margin is negative 50.2%. These are all lower than FUBO’s internet and data services industry peers.
It means there is a lot of red in FUBO’s ledger. And that’s bad news for investors.
As you can see by the red line below, FUBO stock is down 89.2% over the last 12 months.
Its internet and data services peers dropped an average of 46.6% over the same time, shown by the blue line.
fuboTV stock scores a 23 overall on our proprietary Stock Power Ratings system.
That means we are “Bearish” on the stock and expect it to underperform the broader market.
Americans continue to cut the cable TV cord.
While fuboTV may provide a great platform for all your favorite streaming networks, not even the cord-cutting trend can help FUBO stock.
Stay Tuned: Metal-Working Mastery
Tomorrow, we’re returning to our original Stock Power Daily form.
Stay tuned: I’ll share all the details on a top-rated company that produces steel for the aerospace industry.
Matt Clark, CMSA®
Research Analyst, Money & Markets
P.S. I’d love to hear what you thought about my “Stock to Avoid” article today. Was it valuable? Would you like us to continue sharing high-risk stocks on occasion, so you know what to stay away from?
Would you prefer that we only share “Bullish” and “Strong Bullish” stocks?