FuboTV Stock Surges 22% as Analyst Raises Price Target to $6

fuboTV shares surged 22% on Wednesday after a Wall Street analyst issued a bullish call, citing positive preliminary financial results. The company reported revenue of $373.5 million, a 4.5% YoY decline, but better than expected, and total subscribers of 1.69 million, up from 1.57 million. The analyst raised his price target to $6, representing potential gains of 69%. The stock has rallied 240% so far in 2025.

fuboTV (NYSE: FUBO) saw its shares surge by 22% on Wednesday, following a bullish call from Wedbush analyst Dan Ives. The analyst raised his price target to $6, representing potential gains of 69% from Tuesday's closing price. The catalyst for the price jump was the company's preliminary second-quarter results, which significantly exceeded expectations.

According to the preliminary results, fuboTV reported revenue of $373.5 million, a 4.5% year-over-year (YoY) decline, but better than the company's previous guidance of $352 million. The company also reported total subscribers of 1.69 million, up from 1.57 million, and an expected net loss of $8 million, a significant improvement compared to the prior-year quarter's loss of $18 million.

Dan Ives, the analyst who issued the positive note, cited the company's preliminary results as encouraging and noted that management's guidance was conservative. He maintained his outperform (buy) rating on the stock, raising his price target to $6, up from $5. The analyst's optimism comes at a time when fuboTV has shown remarkable turnaround, having skyrocketed 240% in 2025 (as of this writing) after plunging 60% in 2024.

Despite the positive news, fuboTV still faces challenges. The company has been struggling with subscriber growth and profitability. In the first quarter of 2025, fuboTV's North American paid subscriber count fell to 1.47 million, down from 1.676 million in the previous quarter. Revenue in the region increased slightly to $408 million, but free cash flow remained deep in negative territory at $62 million. The company's international subscribers also dropped by 11% year-over-year, with segment revenue flatlining around $8.4 million.

However, fuboTV's recent deal with Walt Disney (NYSE: DIS) could be a turning point. The entertainment giant and its partners agreed to pay $220 million and provide a $145 million term loan to acquire a 70% stake in fuboTV. This deal brings the two live TV businesses under the same umbrella, creating a combined footprint that is expected to serve more than 6.2 million North American subscribers. The deal gives fuboTV scale, capital, and content leverage, which could help it compete more effectively in the live streaming TV market.

Despite the challenges, fuboTV's future looks more promising with the Disney deal. The company has shown progress in tightening its operations, with adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) improving by $37 million year-over-year in Q1. Free cash flow is negative but trending in the right direction, having improved by $9.3 million since the first quarter of last year. However, the picture is still not ideal, with guidance for Q2 implying a continued drop in subscribers and revenue.

In conclusion, fuboTV's shares surged on Wednesday following positive preliminary financial results and a bullish call from a Wall Street analyst. While the company still faces challenges, the recent deal with Disney could provide the necessary scale and stability to compete more effectively in the live streaming TV market. Investors with a tolerance for risk and patience may find fuboTV an attractive investment opportunity.

References:
[1] https://finance.yahoo.com/news/why-fubotv-stock-skyrocketed-wednesday-163000047.html
[2] https://finance.yahoo.com/news/streaming-crowded-why-fubotv-still-101500064.html