Why fuboTV stock is rising today

fuboTV (FUBO 11.90%) the stock sees big gains in Thursday’s trading. The streaming TV company’s share price rose 11.5% as of 3:15 PM ET despite S&P 500 index and Nasdaq Composite the index has both fallen by 0.4 per cent.

fuboTV shares are gaining ground today in connection with new reports on TV ratings for 2024. Sports content, which is the focal point of the company’s service offering, had another very strong year.

fuboTV posts big gains in sports viewership data

2024 was another great year for sports programming, and fuboTV stock is getting a boost from strong ratings. While there have been ratings concerns for the NBA of late, the league ended the year on a strong note. As of the most recent update, NBA viewership on ESPN platforms was up 5% year-over-year. After factoring in viewership on the TNT channel, viewership for the league was still down 5% compared to the previous year – but strong performance for games over Christmas helped to allay concerns. Before the increase from the Christmas broadcasts, viewership in the league was down 18% year-on-year.

Meanwhile, the NFL posted another year of stellar performances. The Football League claimed 45 of the top 100-rated broadcasts last year, and it looks like the performance should only improve leading up to the Super Bowl in February.

What’s next for fuboTV?

fuboTV has been an early mover in the sports-focused streaming space and has offered customers alternatives to traditional cable packages. Last quarter, the company saw its revenue increase 21% year over year to reach $377 million. On the other hand, the share’s development has been poor recently.

Despite today’s gains, fuboTV stock is down about 56% over the past year. Resourceful competitors incl Amazon and Netflix has moved into its turf, and this dynamic appears to be affecting the company’s growth trajectory. For the fourth quarter, fuboTV has guided for sales between $426 million and $446 million – representing annualized growth of 9% year over year at the midpoint. With increasing competition and slowing sales growth, fuboTV may need to significantly outperform its Q4 target to extend its bullish streak.