fuboTV (FUBO): A High-Growth Undervalued Play in the Cord-Cutting Revolution

The streaming wars of 2025 have entered a new phase, where live sports content is no longer a niche offering but a battleground for streaming platforms. Amid this shift, fuboTV (FUBO) has emerged as a standout performer, leveraging cord-cutting trends to build a compelling business model centered on sports-first streaming. With a stock price of $3.75 as of August 3, 2025, and a price-to-sales ratio of 0.76, fuboTV appears undervalued relative to its market potential and growth trajectory. This article examines whether the current stock price represents a compelling entry point for long-term investors.

A Tale of Two Metrics: Valuation and Momentum

FuboTV's financials tell a story of resilience and reinvention. Despite a negative operating income of -$154.32 million for the trailing twelve months, the company's net income of $70.31 million and a positive return on equity (ROE) of 21.45% highlight its ability to generate returns for shareholders. The stock's forward price-to-earnings (PE) ratio of 17.86 and trailing PE of 18.75 both exceed its fair value PE of 9.2x, suggesting the market is discounting its earnings potential. However, this gap could narrow as the company scales profitability, particularly with its impending merger with Hulu, which is expected to create a combined entity with 6.2 million North American subscribers.

Analysts have set a consensus price target of $4.83—a 42.67% premium to the current price—underscoring confidence in fuboTV's ability to capitalize on cord-cutting. The stock's one-year total return of 171.74% (compared to the S&P 500's 14.53%) further validates its momentum.

Industry Tailwinds: Why Sports Streaming is the New Gold Standard

The cord-cutting trend has reshaped consumer behavior, with live sports emerging as a key driver of streaming adoption. FuboTV's focus on sports-first bundles—offering access to niche and international leagues—has allowed it to capture a loyal audience that traditional platforms like Netflix and Amazon cannot match. As of Q1 2024, fuboTV reported 1.507 million paid subscribers in North America, with revenue reaching $390 million in the same period. These figures are projected to grow as the company expands its content partnerships, including deals with DAZN and Weigel Broadcasting.

The proposed merger with Hulu adds another layer of strategic value. By combining fuboTV's live sports audience with Hulu's on-demand library and Disney's content, the new entity could dominate the hybrid streaming space. This synergy is expected to reduce content acquisition costs and improve EBITDA margins, addressing one of fuboTV's key weaknesses: its negative ROA of -8.18% and high debt-to-equity ratio of 0.97.

Risks and Realities: Is the Stock a Buy?

While fuboTV's valuation metrics and industry positioning are compelling, investors must weigh several risks. The company's operating losses and $376.77 million in debt could pressure its balance sheet, particularly if content costs rise faster than anticipated. Additionally, the Hulu merger faces regulatory scrutiny, which could delay integration and dilute investor optimism.

However, fuboTV's $321.62 million cash position and projected positive EBITDA of $20 million in Q2 2025 provide a financial cushion. The stock's beta of 2.24 also indicates high volatility, which could amplify gains in a bullish market but magnify losses in a downturn.

A Calculated Bet on the Future of Streaming

For long-term investors, fuboTV's current stock price of $3.75 offers an attractive entry point, especially given its undervaluation relative to its fair value of $5.79 and the analyst consensus price target of $4.83. The company's ability to differentiate itself in the live sports niche, coupled with the Hulu merger's potential to unlock new revenue streams, positions it to outperform broader market trends.

Investors should monitor the August 8, 2025 earnings report for signs of EBITDA improvement and subscriber growth. A positive report could catalyze a re-rating of the stock, closing the gap between its current price and intrinsic value.

Final Verdict: Buy for the Long Haul

FuboTV's stock is undervalued by traditional metrics but justified by its high-growth potential in a rapidly evolving industry. While short-term risks exist, the company's strategic focus on live sports, technological innovation, and merger with Hulu create a strong foundation for long-term appreciation. For investors willing to ride the volatility, FUBO represents a compelling opportunity to participate in the cord-cutting revolution—and the next phase of streaming's evolution.

Investment advice: Consider allocating a small, risk-tolerant portion of your portfolio to FUBO, with a stop-loss at $3.00 and a target of $4.83 to capitalize on its growth trajectory.