Growth Stock Down 97%: A Speculative Buy?

FuboTV (FUBO 2.35%) has been a rollercoaster ride for investors since its peak in late 2020. The streaming television platform, which offers a robust lineup of sports programming and is cheaper than traditional cable, has seen its stock price plummet by about 97% from its all-time high. However, some analysts believe that this ticker is a speculative buy in the shadow of a major, multiyear pullback. Let's explore the bullish case for fuboTV and why it might be an attractive investment opportunity for risk-tolerant investors.

FuboTV's customer count reached a record of nearly 2 million in the third quarter of 2024, with most of its growth coming from its full-price cable alternative service. The company's service appears to be appealing enough and affordable enough to keep drawing a crowd, despite competition from other streaming platforms and the cord-cutting trend. Additionally, fuboTV's legal argument with Walt Disney, Fox, and Warner Bros. Discovery over a sports-centric streaming service has likely contributed to its stock price decline, but it may not be a long-term concern.



One reason to consider fuboTV as a speculative buy is the possibility of an acquisition. As media outfits explore other options to drive organic growth, dealmaking is becoming increasingly popular. Walmart's acquisition of TV manufacturer Vizio and the intended merger between AT&T's DirectTV and Echostar's Dish Network are examples of this trend. While there's no guarantee that fuboTV will inspire a suitor to make an official offer anytime soon, the argument holds some water.

Another factor to consider is fuboTV's focus on sports programming. As the company continues to expand its sports offerings, it may attract more sports fans who are looking for an affordable alternative to traditional cable. Additionally, fuboTV's on-demand library and local channel availability may further enhance its appeal to consumers.

In conclusion, fuboTV is a speculative buy for risk-tolerant investors who can stomach the risk of a significant stock price decline. The company's customer growth, focus on sports programming, and potential acquisition opportunities make a compelling case for investing in fuboTV. However, it's essential to remember that this stock is not suitable for everyone's portfolio, and investors should carefully consider their risk tolerance before making an investment decision.