FUBO

Based on the provided data, FUBO presents a high-risk proposition with significant fundamental challenges that currently outweigh its potential.

Technical Analysis & Valuation: The stock is technically oversold after a severe decline, suggesting a potential for a technical bounce. However, negative cash flow and earnings make traditional valuation metrics unreliable; the low Price-to-Sales ratio is attractive but must be viewed in the context of deteriorating profitability and margins.

Fundamentals & Risk: The core issue is weakening financial health. Declining revenue, a swing to negative EBITDA, and poor liquidity metrics indicate significant operational stress. Coupled with a high beta indicating extreme volatility, the stock carries substantial downside risk if the company's turnaround efforts falter.

Recommendation: Not a Buy at Present. While the stock appears cheap on a sales basis, the underlying business shows clear signs of distress with no near-term catalyst for improved profitability. Investors should wait for concrete evidence of a sustainable operational turnaround, such as a return to revenue growth and a credible path to positive cash flow, before considering a position. The current risk/reward profile is unfavorable.

*This is not investment advice, for reference only.*

RockFlow Model Forecast: Three Scenarios for 2026

Based on a comprehensive analysis, the 12-month outlook for fuboTV (FUBO) is highly uncertain and carries significant risk. The primary catalyst for any sustained positive movement hinges entirely on a successful operational turnaround, demonstrated by a return to revenue growth and a clear, credible path to achieving profitability and positive cash flow. The major risks are substantial, including the persistent cash burn, deteriorating fundamentals, and the high likelihood of continued extreme volatility; failure to secure adequate financing or improve unit economics could lead to further downside. Without a clear catalyst for profitability and given the current distressed financial state, the stock is likely to remain under pressure, with a projected trading range remaining volatile and biased towards the lower end of its recent spectrum until fundamental improvements are concretely demonstrated.

Wall Street Consensus

Most Wall Street analysts are optimistic about FUBO's 12-month outlook, with consensus target around $2.63, indicating expected upside potential.

Overall, FUBO has investment potential but also faces challenges. Here are key factors to weigh before investing.

FUBO has demonstrated significant underperformance with substantial volatility over the past year.

Short-term performance shows pronounced weakness, with the stock declining 11.11% over one month and 33.85% over three months, significantly underperforming the broader market by 37.58 percentage points during the latter period. The stock's high beta of 1.95 indicates it has been approximately twice as volatile as the market, amplifying these losses.

Currently trading at $2.56, FUBO sits just 12.3% above its 52-week low of $2.28 and approximately 48% below its 52-week high of $4.90. Given its proximity to recent lows and a maximum drawdown of -47% over the past year, the stock appears deeply oversold from a technical perspective.

Revenue & Profitability: FUBO's Q3 revenue declined slightly to $377 million from $380 million in Q2, while profitability deteriorated significantly. The company swung to negative EBITDA of -$6.2 million from positive $7.9 million last quarter, with net losses widening to -$18.9 million. Gross margins compressed to 18.0% from 20.4%, indicating pricing pressure in its streaming operations.

Financial Health: The company maintains moderate leverage with a debt-to-equity ratio of 0.93, but liquidity concerns are evident with a weak current ratio of 0.69. Cash flow metrics are concerning, with negative operating cash flow and a cash flow-to-debt ratio of -0.017, suggesting insufficient cash generation to service obligations.

Operational Efficiency: FUBO demonstrates poor returns with negative ROE of -4.7% and ROA of -1.6%, indicating inefficient capital deployment. While asset turnover of 0.31 shows moderate revenue generation from assets, the negative interest coverage ratio of -4.6 reflects operational earnings insufficient to cover financing costs.

Valuation Level: FUBO's valuation metrics are contradictory, presenting a confusing picture. While its trailing PE ratio of 6.46 and PS ratio of 0.56 initially suggest potential undervaluation, the forward PE is negative and the EV/EBITDA is profoundly negative at -247, indicating the company is not generating positive earnings or operating cash flow. The negative PEG ratio further confirms that meaningful earnings growth projections are absent, making traditional valuation metrics problematic.

Peer Comparison: Without industry average data for comparison, a definitive peer assessment cannot be established. The negative profit-based metrics (forward PE, EV/EBITDA) suggest FUBO is underperforming relative to profitable media streaming companies, though the low revenue-based multiple (PS ratio) might appear attractive if comparable to industry norms. A conclusive peer evaluation requires context from industry benchmark data.

Volatility Risk: With a beta of 1.947, FUBO is significantly more volatile than the broader market, implying its price is highly sensitive to market fluctuations. This elevated volatility is confirmed by the substantial 1-year maximum drawdown of -47.16%, indicating a history of deep losses that presents considerable risk for investors susceptible to large price swings.

Other Risks: While the absence of short interest mitigates the immediate threat of a short squeeze, it does not eliminate fundamental business or sector-specific risks. Investors should still assess liquidity, cash flow sustainability, and the competitive pressures within the streaming sector, which could materially impact the stock's performance independent of speculative positioning.