Is fuboTV Stock On Borrowed Time?
This market downturn has been brutal. Tons of stocks have lost most of their market value, and live-TV streaming service fuboTV (NYSE: FUBO) is among them. The stock once traded at more than $40 last year, but it sits in the low single digits today. The good news is that some of these beaten-down stocks will recover, eventually setting new highs as the businesses flourish.
But will fuboTV be one of them? Unfortunately, the company is stuck in a bind that puts shareholders in a potential heads-you-lose, tails-you-lose scenario. The company has demonstrated stunning revenue growth over the past couple of years, but it has financial red flags that investors should consider before buying the stock.
fuboTV's core product is live-television programming. It doesn't own the channels it offers. Instead, it pays the network companies fees for broadcasting rights. This isn't a unique business model; virtually every live television service does the same thing. This makes live television significantly price-competitive, so fuboTV must offer its service nearly at cost to remain competitive.
Source Fool.com
