BENSALEM, Pa.–(BUSINESS WIRE)–Law Offices of Howard G. Smith announces an investigation on behalf of FuboTV, Inc. (“Fubo” or the “Company”) (NYSE: FUBO) investors concerning the Company’s possible violations of federal securities laws.
On December 30, 2020, Kerrisdale Capital published a report titled “fuboTV Inc. (FUBO), Requiem for a Stream,” which criticized Fubo’s core subscription business as “structurally unprofitable” due to “high variable content costs with contracted escalators.” The report also agreed with other analysts who stated that Fubo’s valuation was “absurd,” and characterized Fubo’s acquisition of Balto Sports as a “foolish” attempt to enter the “already highly competitive space [of sport wagering].”
On this news, Fubo stock price fell $9.70 per share, or 25.72%, to close at $28.00 per share on December 31, 2020, thereby injuring investors.
On January 4, 2021, Motley Fool published an article stating that the Company is “nowhere close to turning a profit” as “direct costs of delivering its service are higher than revenue.” The article also concluded that “fuboTV’s adjusted contribution margin is a meaningless number. It’s a function of how quickly the company is gaining subscribers, not a representation of profitability. The fact that the company reports such a misleading metric is a huge red flag.”
On this news, Fubo stock price fell $3.99 per share, or 14%, to close at $24.24 on January 4, 2021, thereby injuring investors further.
If you purchased Fubo securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to email@example.com, or visit our website at www.howardsmithlaw.com.
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