2 Terrible Stocks I Refuse to Buy
All investors have some stocks they just don't like. Maybe they don't like the industry, or perhaps there's something about the company's business model that rubs them the wrong way. For me, two such stocks are streaming company fuboTV (NYSE: FUBO) and cryptocurrency exchange (NASDAQ: COIN). Here's why I'm avoiding these two stocks.
Sports-centric streamer fuboTV is having no trouble winning subscribers, but it's having an awful lot of trouble turning a profit. The company's subscriber count in North America surged 20% year over year in the third quarter, and average revenue per subscriber jumped 17%. This led to total revenue growing by 43%, an impressive figure.
The problem that has always plagued fuboTV is that its costs are simply unstainable. The situation has improved, but the company's gross margin was just 6% in the third quarter. fuboTV made progress knocking down costs relative to revenue in the third quarter, but it's nowhere close to turning a profit. With $321 million in revenue, the company posted a net loss of $84 million. Through the first nine months of the year, free cash flow was a loss of $163 million, putting the company on pace to burn through more than $200 million of cash this year.
Source Fool.com
Coinbase Global Inc. Stock
Currently there is a rather positive sentiment for Coinbase Global Inc. with 29 Buy predictions and 16 Sell predictions.
On the other hand, the target price of 157 € is below the current price of 208.15 € for Coinbase Global Inc., so the potential is actually -24.57%.
