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PreMarket Prep Stock Of The Day: FuboTV

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PreMarket Prep Stock Of The Day: FuboTV

Benzinga's PreMarket Prep airs every morning from 8-9 a.m. ET. During that fast-paced, highly informative hour, traders and investors tune in to get the major news of the day, the catalysts behind those moves and the corresponding price action for the upcoming session.

On any given day, the show will cover at least 20 stocks determined by co-hosts Joel Elconin and Dennis Dick along with producer Spencer Israel.

What goes up must eventually come down, although in this market environment, it can take some time. While positive catalysts can push issues higher and higher, a negative catalyst can knock an issue off its perch. A great example of this is FuboTV Inc (NYSE: FUBO), which is the PreMarket Prep Stock Of The Day.

The Company: FuboTV offers consumers a live TV streaming platform for sports, news and entertainment through FuboTV. The company generates revenues through the sale of subscription services and the sale of advertisements in the United States.

The Move: After ending 2019 at $8.81, FuboTV ended January at $10. It was cut in half by April when it bottomed at $5. Its initial rally off that low took the issue to $22 in May, but investors actually had a chance to purchases the issue in single digits, when it bottomed in September at $8.28.

From that low, the rally is nothing short of amazing. In Tuesday’s session, the issue peaked at $62.29 and ended the session just off that level at $62. From the April low, that represents a gain of over 1,000%.

2 Analysts Get Bullish On The Same Day: On Nov. 2, Needham’s Laura Martin initiated the issue with a Buy rating with a $17 price target, while BMO Capital initiated the issue with an Outperform rating and an $18 price target.

Interestingly, the Street was not all that impressed with the calls and the issue edged up slightly from $13.49 to $13.80 on lower volume than the previous day’s session.

Analysts Go Different Ways: The boat was fully loaded with longs looking for higher prices as the issue had rallied from $26.47 to $62 in only five trading sessions on much heavier than average volume. In addition, Needham's Martin stoked the bullish inferno, when she appeared on CNBC’s "Closing Bell" and raised her price target to $60. Her commentary pushed the issue as high as $63.33 in the after-hours session.

However, enough was enough for BMO, and on Wednesday downgraded the issue to Market Perform with a $50 price target. That target was $12 below Tuesday’s closing price.

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Finally Some Profit-Taking: At this time, the Street is using the downgrade to lock-in profits. After a lower open ($56.08 vs. $62), it immediately matched Tuesday’s low at $52.50 and reversed course. As of 12 p.m. ET, it had rallied all the way to $57.75 but was trading around $56.11 at publication time.

Moving Forward: As evidenced by the nice rally off Tuesday’s low, there are still some buyers out there in the issue. The question remains are the buyer’s bloodied shorts looking to wiggle out or new longs looking for new all-time highs and beyond.

Latest Ratings for FUBO

DateFirmActionFromTo
Jan 2021Barrington ResearchInitiates Coverage OnOutperform
Dec 2020BMO CapitalDowngradesOutperformMarket Perform
Dec 2020NeedhamMaintainsBuy

View More Analyst Ratings for FUBO
View the Latest Analyst Ratings

 

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