LOS ANGELES–(BUSINESS WIRE)–The Law Offices of Frank R. Cruz announces an investigation of FuboTV, Inc. (“Fubo” or the “Company”) (NYSE: FUBO) on behalf of investors concerning the Company’s possible violations of federal securities laws.
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On December 30, 2020, Kerrisdale Capital published a report titled “fuboTV Inc. (FUBO), Requiem for a Stream (“Kerrisdale Report”), which criticized Fubo’s core subscription business as “structurally unprofitable,” and stating, Fubo’s valuation as “absurd,” and Fubo’s acquisition of Balto Sports as a “foolish” attempt to enter the “already highly competitive space [of sport wagering].” The Report questioned the Company’s strategy: “dropping content to manage costs is reactionary and destined to cause eventual spikes in churn and SAC.”
On this news, Fubo stock price fell $9.70 per share, or 25.72%, to close at $28.00 on December 31, 2020, thereby injuring investors.
On January 4, 2021, Motley Fool published an article titled, “There’s a Big Problem with FuboTV Stock” 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. It’s reason enough to stay far away from the stock.”
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.
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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 Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to email@example.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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