Editor's Note: My friend and colleague, Alex Kagin, recently went online in a podcast to reveal the name of a company that'll have his listeners cashing in on the "TV anywhere" phenomenon that's changed the way we spend our free time and opened up a massive "ground floor"-style opportunity for investors. The response was so great that we thought we'd share it with everyone. – Michael Robinson
With people spending more time at home, subscriber totals for Disney Plus, Netflix, and Roku have ballooned by the tens of millions, and 80% of U.S. households now have at least some way to stream videos.
The quality and amount of content is incredible, but there's something that's been lacking with the services listed above – the ability to just sit down and channel surf live TV, have live news updates running in the background, and watch your favorite sports as they are being played.
Thankfully, products like Alphabet Inc. (NASDAQ: GOOGL)'s YouTube TV, DISH Network Corp. (NASDAQ: DISH)'s SlingTV, and Walt Disney Co. (NYSE: DIS)'s Hulu Plus Live TV have all helped us unplug from the traditional cable companies that charge an arm and a leg for a bunch of extra channels we don't want or need.
You can now watch live TV with a simple Internet connection anywhere and on any device.
But there's one company that stands out to me above the rest – one that I have been excited about since I spoke with its CEO earlier this year on the Nova-X lifetime podcast, Digitization-X.
Back in July, when I had my one-on-one interview with the CEO, the stock was trading around $10.
Today, it's at $16. But that won't last…
This Company Has Incredible Growth Ahead
The upside is just getting started for FuboTV Inc. (NYSE: FUBO).
While it only started as a soccer streaming service in 2015 (just five years ago), it quickly saw the interest in a sports-centric network, and everything took off from there.
Now in 2020, as a publicly traded company, Fubo has one of the largest selections of live content with one of the leading live sports packages on the market.
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That's impressive given the size of some of FuboTV's competitors.
Just like a typical cable company, FuboTV makes its money in the same way, through subscriptions and advertising revenue. The big difference is how it's positioned itself with the tag line, "Come for the sports, stay for the entertainment." It has used the demand for sports to acquire and retain its subscribers as a differentiated platform.
Not only does FuboTV carry the NFL, NBA, MLB, and NHL, but you can also watch NASCAR, MLS, golf, tennis, boxing, MMA, college sports, and more for a total of over 50,000 live sporting events and 110 channels. That translates to subscribers watching over 120 hours per month and total content-hours streamed – that's up 83% year over year.
This all translates to revenue growth of 47% – up to $61 million. Its two main revenue drivers, subscriptions and advertising, were up 64% and an astounding 153%, respectively.
I'm particularly excited about this growth in advertising as the shift to connected TV advertising is a $200+ billion market – and it's moving quickly. FuboTV recently hired Diana Horowitz, who managed advertising at The New York Times, Scripps Networks, Comcast, and IBM and should help to continue this growth.
While these numbers are impressive, FuboTV is just getting started. At the end of third quarter, paid subscribers totaled 455,000, 58% higher than a year ago at 288,000. This shows just how fast Fubo is growing and how much potential there still is in a market with 100+ million potential customers.
Fubo expects to end next quarter with 500,000-510,000 customers and revenue of $80 million to $85 million, which would represent a 50% jump, year over year.
PUT THIS ON YOUR CALENDAR: Shah Gilani is hitting the Internet for a full hour on Nov. 24 to dish the dirt on 50 stocks he thinks every investor needs to know about. Click here to set a calendar reminder; this could be the most important hour you spend this week. iCal | Google | Outlook
While many businesses have slowed during the pandemic, FuboTV cut deals and continued to work on its product. It announced a multiyear distribution deal with Disney to bring ESPN and other Disney channels to its service. What's more, Fubo started offering its service on Xbox, and it cinched new agreements with Starz and Epix. If that weren't enough, it launched Fubo Sports Network on PlutoTV. This has all led to improved viewership hours.
As it continues to innovate and differentiate its product from traditional cable, Fubo is expanding into new businesses with the major move of getting into the online sports wagering market, a multibillion-dollar market on its own. Combining a sports betting service with live sports could end up being a home run, given the audience it already has.
On top of all this, the shares have recently been "uplisted"; the stock has gone from trading with smaller, less liquid shares "over the counter" to the "Big Board" of the New York Stock Exchange. This is the perfect time to buy some yourself.
I'm predicting big things ahead for FUBO, but Shah Gilani, "The Man Who Calls It All" is making an even bigger, bolder prediction: A $353 billion wave of capital could be headed directly to five companies. This is huge – here are the details…
About the Author
Alex Kagin is the Director of Technology Investing Research at Money Map Press. He has spent the last decade working in equity research, most recently with Energy Capital Research Group (ECRG), where he led technology stock research along with working as part of a team developing a customizable financial data platform for securities analysis.
Prior to joining ECRG, Alex spent 8 years at DeMatteo Research, a boutique primary research firm and broker-dealer servicing the institutional investment community. He managed the Tech, Media, and Telecom vertical where he spent time connecting with hundreds of tech executives and hedge funds to get the pulse of the market.
Alex has a B.S. in Economics from American University and previously held Series 7 and 63 security licenses.