Fubo Could Be Emerging as the Next Sports Betting Stock

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Fubo Could Be Emerging as the Next Sports Betting Stock

Two big sports betting stocks emerged last year. Now a third may be joining the club: Fubo TV.

Activity has surged in the streaming-video company lately. As this chart shows, average stock volume has increased from less than 5 million shares a day to over 21 million. Options volume has also quadrupled from under 50,000 contracts per session to over 210,000.

The rally began in mid-November with a strong quarterly report. Activity accelerated after FUBO acquired fantasy-sports startup Balto on December 1. Bullish analyst notes and commentary appeared later in the month from Motley Fool, Needham, Wedbush and Oppenheimer.

The stock pulled back after the lockup period for its IPO expired in December, and retraced more than half its gains before stabilizing.

Fubo TV (FUBO), daily chart, with 50-day moving average, options volume and share volume.
Fubo TV (FUBO), daily chart, with 50-day moving average, options volume and share volume.

Another consideration is a potential short squeeze. Some heavily shorted companies like GameStop (GME) have exploded higher lately. FUBO’s short interest was over 60 percent of its float late last month.

The company could also be worth watching from a simple growth perspective. Consensus estimates forecast revenue will grow from under $120 million on a trailing 12-month basis to $250 million in 2020, and then to $460 million in 2021.

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