fuboTV Inc. (FUBO): A Bear Case Theory

Core Viewpoint - FuboTV Inc. is facing significant challenges, with its business model heavily reliant on the Hulu + Live merger for survival, as evidenced by declining revenues and negative cash flow [2][3][6] Financial Performance - FuboTV's revenue declined by 2.3% year-over-year, marking the second consecutive quarter of contraction, indicating a failure to scale in a high fixed-cost industry [2] - Average revenue per user (ARPU) has continued to fall despite modest subscriber gains, leading to weaker overall revenue [2] - Free cash flow remains negative, with expenses rising sequentially while revenue declined, showing no operating leverage [3] Subscriber Growth and Strategy - The strategy of cutting prices to stimulate subscriber growth has not been effective, and the struggles of Hulu + Live to grow its base cast doubt on the potential benefits of the merger [3] - FuboTV has 1.6 million subscribers compared to Hulu + Live's 4 million, raising questions about its influence in the merged entity [5] Advertising Trends - North American ad revenue for FuboTV is down 7% year-over-year, highlighting the company's lack of scale and appeal to advertisers [4] - Despite a reported 36% growth in upfront sales, this offers little comfort due to the small revenue base [4] Overall Assessment - With deteriorating fundamentals, continued cash burn, and limited pricing power, FuboTV is considered uninvestable as a standalone entity and appears subordinate within the Hulu-led structure [6]