FuboTV (FUBO) shares tumbled Wednesday even though the sports-focused streaming video service smashed analyst estimates for new subscribers in the third quarter. FuboTV stock sank more than 18% after the company posted a bigger loss than expected.
The New York City-based company late Tuesday said it added 262,884 subscribers in the September quarter, ending the period with 944,605 total subscribers. Analysts expected FuboTV to add 137,000 new subscribers in the third quarter for a total of 817,000 subscribers, according to FactSet.
After the quarter ended, FuboTV crossed the milestone of 1 million subscribers.
FuboTV lost 74 cents a share on sales of $156.7 million in the third quarter. Wall Street had predicted a loss of 61 cents a share on revenue of $143.5 million, FactSet said.
On an adjusted basis, FuboTV lost 59 cents a share, compared with a loss of $1.08 in the year-earlier period.
FuboTV Stock Drops
In midday trading on the stock market today, FuboTV stock dropped 18.8%, near 26.90. During the regular session Tuesday, FuboTV stock slipped 1.6% to close at 33.13.
For the current quarter, FuboTV forecast revenue of $207.5 million, up 97% year over year. That’s based on the midpoint of its outlook. Wall Street had predicted sales of $179.6 million in the fourth quarter, FactSet said.
FuboTV expects to end the year with 1.06 million to 1.07 million subscribers. Analysts were targeting 927,000 subscribers.
“The one million subscriber milestone represents an exciting inflection point in our business, with tremendous implications for revenue growth and profitability, particularly given the continued strength of our advertising business,” FuboTV Executive Chairman Edgar Bronfman Jr. said in a news release.
In other news, FuboTV announced a deal to buy Molotov, France’s leading live-TV streaming platform, for about $190 million.
FuboTV Stock: ‘Emperor Has No Clothes’
In a report Tuesday, LightShed Partners slammed FuboTV stock. The firm raised doubts about whether the company could make a viable business out of its money-losing multichannel video service and subscale sports-betting product. LightShed analysts also said that FuboTV is overpaying for sports rights.
The end game for FuboTV executives likely is to “sell the company before everyone realizes how bad the underlying financial story actually is,” LightShed analysts said. FuboTV investors have yet to realize that “the emperor has no clothes,” the report said.
On Nov. 3, FuboTV launched Fubo Sportsbook, an online betting service, in the U.S., starting with Iowa. The sportsbook service is integrated with the company’s live-TV service on mobile devices.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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