As TV-streaming stock investors will know all too well, the sector is a brutal arena at the best of times. So far in 2025, sports streaming platform fuboTV (FUBO) has risen 204% following a blockbuster merger plan with Disney’s Hulu+. That news alone doubled the company’s stock price. With earnings results set to be published on Friday this week, all eyes are on FUBO’s next move. Specifically, what management has in store to commercialize its new partnership with Disney (DIS) and consolidate its emergent growth story. Bullish fatigue may set in unless FUBO can build upon its high-profile acquisition via commercially viable substance and clear forward guidance.
I’m optimistic that the deal can succeed and remain tentatively bullish, but this week’s earnings call could be a game-changer for the stock. I’m also wary that after such a strong rally, further upside potential could be limited given the risk of regulatory strife and investors likely trimming their positions given the inherent topsy-turvy nature of service-focused tech stocks.
Cord-Cutting to a Higher Share Price
As a company, FUBO was founded on a simple principle: give sports fans as much content as possible while disconnecting them from cables. The cord-cutting platform now hosts tens of thousands of live events annually on phones, tablets, computers, and smart TVs with U.S. and European customers.
Most interestingly, it provides regional sports networks, offering greater choice and multi-view options. With 1.6 million paid subscribers, management has reached $377 million in revenue, up an impressive 21% in a year. Focusing on sports is paying off, but hitching its wagon to Disney promotes FUBO into a higher tier of commercial opportunity.
The Disney Deal and Beyond
January 6th, 2025, was a huge day for fuboTV shareholders, with Disney announcing plans to merge Hulu+ Live TV with Fubo, taking on a 70% stake in the combined entity. With about 4.6 million users adding to Fubo’s existing user base, it now sends the platform into the major leagues regarding TV streaming firms. For now, the brands will coexist, with Fubo picking up the news and sports angle and Hulu handling the entertainment content over the next 12-18 months. The enormous numbers in play open up further opportunities for ad-supported streaming, reducing costs and widening appeal.
This is clearly an exciting synergy, especially if Disney throws ESPN into the mix, and also totally removes the overhanging uncertainty of an antitrust lawsuit between the companies over the Venu Sports venture.
However, risks remain, so it is essential to consider the fair value of shares based on current expectations. If a deal were to collapse, investors would likely seek to establish solid ground for the share price. A discounted cash flow (DCF) model suggests the share price might be fairly valued at ~$2.64 per share—a 29% drop from the current level.
Friday’s Earnings Could be a FUBO Game-Changer
The stakes are sky-high for the company after such a rally in the first couple of months of 2025. Revenues are expected to land around the $426-446 million mark, a solid 26% jump from Q4 2023, attributed to subscriber growth and enthusiasm in recent sports events. Earnings are also expected to rise 29% from last year, although still marginally unprofitable at -$0.12 per share.
The company consistently beats EPS forecasts, so a good report could easily send shares flying further, but I’d be wary about a rare disappointment, too. At this point, investors will seek management’s guidance on when profitability may be reached. This looks likely to be in 2026, but it will depend entirely on the strategy and broader economic performance over the coming months.
As a bull, I’m keeping a close eye on subscriber growth. Analysts will also closely watch average revenue per user (ARPU) to determine how advertising revenues and the wider monetization of the platform are progressing. I will also want further details on how management expects to integrate with Disney as part of the merger. With regulation always a key issue with such deals, any delays or bad news around antitrust issues could easily send shares tumbling. Senator Warren has asked the Justice Department to investigate, which could quickly derail the entire process.
Friday’s earnings likely will lead to a dramatic reaction in the share price, but the direction remains uncertain. The Disney merger is exciting for shareholders and opens up enormous opportunities in marketing and overall synergies. However, a change in the company’s identity could dilute the experience for some. Whether Fubo management can hold onto the current strategy or whether Disney’s might and resources will eclipse any current ideas will become clearer on Friday.
Is FUBO Stock a Buy?
On Wall Street, FUBO stock carries a Moderate Buy consensus rating based on two Buy, two Hold, and zero Sell ratings over the past three months. FUBO’s average price target of $5.72 per share implies approximately 47% upside potential over the next twelve months.
Friday Deadline for Cordless Revolution Cheerleader FUBO
Regardless of Friday’s outcome, FUBO is a stock that will endure volatility and remain a must-watch stock over the coming quarters. The company’s recent merger has added impetus to its profile and operations, which has, in turn, led to stock price gyrations. This provides good opportunities for investors with the right approach and appropriate risk appetite to capitalize, demonstrating that further price catalysts lie ahead. However, I wouldn’t recommend FUBO for investors with a weak stomach because there is ample volatility to be expected and possibly several setbacks before FUBO achieves the stellar returns its investors are hoping for.
Given the recent merger news and Wall Street analyst support, I remain tentatively bullish on the stock. Of course, the risk of FUBO’s media aspirations petering out and the stock sagging is ever-present. However, this week’s earnings call should clarify the roadmap ahead for both FUBO’s management and excited yet tentative investors keenly awaiting the company’s next move.