This Beaten-Down Stock Has a Big Problem on Its Hands. Should Investors Worry?
Share prices of sports-centric streaming service fuboTV (NYSE: FUBO) are down more than 90% from their all-time high and down more than 70% year to date. A big reason for the drop is that the company is burning tons of cash and racking up a net loss of $485 million over the past 12 months. That's a pretty astounding loss for a small-cap stock with a market capitalization hovering around $710 million.
Investors knew it would be a tough business model to succeed with, but some hoped fuboTV would turn the corner on profitability by monetizing its large user base in more lucrative ways. Recently, the company announced it was abandoning what many had hoped would be its cash-flow machine. The news is leaving remaining investors to wonder what to do now.
fuboTV just released preliminary results for its third quarter of 2022. The highlight of this report is it now has more than 1.2 million paying subscribers -- an increase of 27% year over year. The stock popped on this news because subscriber growth is important.
Source Fool.com
