fuboTV Inc. (FUBO): A Bull Case Theory

We came across a bullish thesis on fuboTV Inc. on wallstreetbets subreddit by Loretta_Orange. In this article, we will summarize the bulls’ thesis on FUBO. fuboTV Inc.'s share was trading at $4.2700 as of September 12th. FUBO’s trailing and forward P/E were 22.47 and 56.82 respectively according to Yahoo Finance.

FuboTV (FUBO), a live television streaming platform often dubbed the “Netflix of Sports,” has long struggled with profitability, share dilution, and weak governance, leaving investors heavily diluted since its 2020 IPO. The company, however, is now at the center of a transformative merger with Disney’s Hulu Live TV, which could reshape its trajectory. After Fubo filed an antitrust lawsuit against Disney, Fox, and Warner Bros. over their Venu Sports venture, Disney pivoted by agreeing in January 2025 to fold Hulu Live into Fubo, granting Fubo access to Hulu’s 5 million subscribers.

Under the deal, Disney would own 70% of the company, while Fubo shareholders retain 30% and full voting rights. The stock surged more than 300% on the announcement but stalled as the Department of Justice (DOJ) issued a second request, delaying approval. With the review now past typical timelines, speculation has grown that approval is near, particularly following the resolution of Google’s high-profile antitrust case and recent political signals.

Fundamentally, the merger would triple Fubo’s subscriber base, providing the economies of scale necessary to cover high fixed costs such as licensing and infrastructure, potentially driving the company into profitability. A rebrand under Hulu could further enhance growth and brand recognition. Shareholder votes on the merger are due September 30, while DOJ approval remains the key catalyst that could trigger a major rerating. Despite accumulated losses of $1.84 billion and a market cap of just $1.4 billion, activist pressure, hedge fund interest, and imminent regulatory decisions make Fubo a high-risk, high reward play with asymmetric upside.

Previously we covered a bearish thesis on Gray Television, Inc. (GTN) by Tyler Moody in November 2024, which highlighted the company’s structural industry challenges, excessive debt load, and reliance on volatile political ad revenue. The company's stock price has appreciated approximately by 25% since our coverage, despite these headwinds. The thesis still stands as GTN’s long-term risks remain significant. Loretta_Orange shares a contrarian perspective but emphasizes FuboTV’s transformative merger with Hulu and potential scale-driven profitability.

FuboTV Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 13 hedge fund portfolios held FUBO at the end of the second quarter which was 17 in the previous quarter. While we acknowledge the potential of FUBO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.