Since its initial public offering (IPO) on October 7, 2020, fuboTV (FUBO) has been one of the hottest stocks on Wall Street. As a streaming platform for sports, news and other entertainment, FUBO surged as a result of the COVID-19 lockdowns and the growing sports betting market.
The 70% short interest in FUBO caused a further rise in stock price since r/wallstreetbets sparked a market-wide short squeeze in January. FUBO has risen from its IPO price in October of $10 per share to an all-time high of over $62 on December 22, 2020.
Are you thinking of purchasing shares in FUBO? Our guide below will help you open a brokerage account and place your first order.
How to Buy FuboTV (FUBO) Stock
Here’s how to get started if you’re a first-time investor.
- Pick a Brokerage
Whether you plan to buy FUBO as a long-term investment or a day trade, the first step is to open your own account with a brokerage firm. Your broker will execute stock orders on your behalf, so it’s important to choose the right broker for your individual investing needs. Any broker in the United States will allow you to purchase shares of FUBO.
Keep the following in mind as you look for a brokerage:
- The cost (both per transaction and other annual fees)
- The average type of investor that uses the platform
- Whether the brokerage offers after-hours trading
- Markets the brokerage covers
- Any research aids the brokerage offers
- Decide How Many Shares You Want
After you open a brokerage account and deposit funds, you next need to decide how many shares of FUBO you want to purchase. Begin by looking at the current price of FUBO and decide how much capital you want to risk. Remember that the price of FUBO can decrease in value at any time, so only risk money you’re willing to lose. It can be helpful to look at a long-term chart of fuboTV’s stock price in order to have a better idea of when you want to buy and sell shares.
- Choose Your Order Type
You want to select the appropriate order type, as this communicates crucial information to your broker, such as the price you want to pay. Choosing the right order type gives you as much control over your investment as possible.
The bid is the highest price that a buyer offers to pay for a share of stock. It is important to keep this in mind before placing a buy or sell order.
The ask is the lowest price that a seller is willing to accept for a share of stock. It’s also important to know this price before placing any orders with your broker.
The spread is the difference in price between the lowest ask and the highest bid. Blue-chip stocks like Apple (AAPL) usually have a low spread, while small-cap stocks and stocks that have lower trading volumes tend to have wider spreads.
A limit order is an order that tells your broker to buy shares in a company at or below a set price. For example, you could set a limit order to buy FUBO for $42. If the price of FUBO falls below $42 per share, your broker will automatically execute the order. If the price of FUBO rises back above $42 before your order is completely filled, your broker will stop buying shares until the price returns to below $42. Using a limit order allows you to have more control over the price you pay and your risk.
A market order is an order that tells your broker to buy or sell shares in a company at the current market price. This order executes at the current price, meaning you put yourself at risk of being filled at an unfavorable price. Using a market order allows you to execute an order instantaneously but it sacrifices price control a limit order offers.
A stop-loss order is an order that tells your broker to sell your shares once it falls to a set price. For example, if you bought 10 shares of FUBO for $42 per share, you may set a stop-loss at $39.44. As a result, if the price of FUBO declines to $39.44, your broker will immediately sell your shares. Setting stop-loss orders allows you to better manage your risk in case of declines in the market.
A stop-limit order is an order that combines the characteristics of both a stop-loss order and a limit order. You can set both an upper and lower limit price with this order type. For example, if you buy FUBO, you might set a limit price of 42.50 and a stop price of $42.
If the price of FUBO rises above $42, your stop-limit order will convert to a limit order. Once this occurs, your broker will fill your order as long as FUBO remains priced at $42.50 or below. If it rises above $42.50, your broker will stop filling your order. All in all, a stop-limit order gives you a lot of control over your entry point into your investment.
- Execute Your Trade
Now that you’ve submitted a completed order form to your broker, you can watch your broker do the rest of the work for you. The time it takes to fill your order depends on the order type you choose to use and the current market conditions. Once your order is filled, most brokers will notify you via email and/or push notification. If your order is not filled during regular trading hours, you may have to place your order again the next day.
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FuboTV (FUBO) Stock History
FuboTV was founded in 2015 as a soccer streaming platform. FuboTV expanded beyond soccer to cover all major sports in 2017. By 2018, fuboTV offered services in Spain, Canada, and the United States and expanded beyond sports into news in 2019. Since moving from the OTC market to the New York Stock Exchange on October 7, 2020, FUBO has been one of the hottest stocks on the street, rising from $10 to an all-time high of $62.29 on December 22, 2020.
Pros to Buying FuboTV (FUBO) Stock
As the COVID-19 lockdowns continue and sports betting becomes legalized in more and more states, FUBO could be primed for further stock gains in 2021.
Since FUBO was named the Pre-Market Prep stock of the day on Benzinga on November 11, the price has more than doubled. These catalysts, along with the continued influence of the r/wallstreetbets short squeeze, could help continue to propel FUBO to new all-time highs in 2021.
Cons to Buying FuboTV (FUBO) Stock
FuboTV has risen exponentially since its IPO in October 2020. Buying a stock that has gone from $10 to over $60 in a few months always carries risk. If you do end up investing in FUBO, remember that the share price can decrease in value significantly and with little to no notice.
Weigh Your Risk Tolerance First
Whether you’re investing in FUBO for the long-term or plan to purchase the stock for a day trade, do your own background research before sinking money into it. While you risk more investing in FUBO as opposed to investing in a diversified fund, any investment can lose value at any time. As a result, never invest more money than you can afford to lose.