Fubo surges almost 17% on reaction to forecast, sports wagering plans

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FuboTV (NYSE:FUBO) shares rocketed north by almost 17%Friday, as Wall Street showed enthusiasm for the streaming TV provider’s outlook and plans for changes to its online sports-wagering service.

On Thursday, Fubo (FUBO) said it was conducting a “strategic review” of its sports-wagering offering, and is looking to bring in a partner to help the company expand its online gaming business. Laura Martin, an analyst with Needham, said the decision to find a wagering business partner also shows that Fubo (FUBO) “is now more focused on moderating its losses.”

Fubo (FUBO) has made sports the main focus of its streaming service, and according to Martin, counts on sports for about 96% of its total viewing hours. Martin said that as content providers shift more of their programming online, Fubo (FUBO) stands to grow and “sports-related channels can’t afford to lose Fubo’s monthly [content] payments.”

Martin has a buy rating and $5-a-share price target on Fubo’s (FUBO) stock.

At Wedbush Securities, analyst Michael Pachter said that Fubo (FUBO) “is focusing on the right things within its control” as “subscriber growth is continuing at a rapid pace.” Pachter has an outperform rating and $5-a-share price target on Fubo’s (FUBO) stock.

Fubo (FUBO) said that for its third quarter it expects worldwide revenue to be in a range of $205M to $211, with $200M to $205M of those sales coming from North America. The company also said that it expects to end its third quarter with between 1,475M and 1,515M subscribers worldwide, up from the 1,294M subscribers it reported for its recently completed second quarter.

In June, Fubo (FUBO) moved to add to its online wagering options by adding so-called “pick ’em” games to its offerings.

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