fuboTV Inc. (FUBO): A Bear Case Theory

We came across a bearish thesis on fuboTV Inc. on Accrued Interest’s Substack by Simeon McMillan. In this article, we will summarize the bulls’ thesis on FUBO. fuboTV Inc.'s share was trading at $2.8800 as of December 2nd. FUBO’s trailing and forward P/E were 9.50 and 21.69 respectively according to Yahoo Finance.

FuboTV (FUBO) remains a deeply challenged business despite a brief post-earnings bounce, as its Q3 2025 results underscored the company’s dependence on the Hulu + Live merger for survival. Revenue declined -2.3% YoY, marking a second consecutive quarter of contraction, revealing that Fubo has failed to scale in a high fixed-cost industry where consistent growth is vital. Even more concerning, average revenue per user (ARPU) continued to fall despite modest subscriber gains, leading to weaker overall revenue.

The strategy of cutting prices to stimulate subscriber growth has not worked, and with Hulu + Live itself struggling to grow its base, there’s little evidence the merger will reverse this trend. Free cash flow remains negative, and expenses rose sequentially while revenue declined, showing no operating leverage. Management’s claims of cutting marketing spend while growing subscribers ring hollow, as such patterns rarely signal a healthy business.

Advertising trends were also weak, with North American ad revenue down -7% YoY, exposing Fubo’s lack of scale and appeal to advertisers. Even the touted 36% upfront sales growth offers little comfort given the small revenue base. While Disney’s oversight of ad sales post-merger may bring marginal efficiencies, it is unlikely to meaningfully change Fubo’s trajectory.

Analysts have already questioned whether Fubo will hold any meaningful influence in the merged entity, given Hulu + Live’s 4 million subscribers versus Fubo’s 1.6 million. With deteriorating fundamentals, continued cash burn, and limited pricing power, Fubo remains uninvestable as a standalone entity and appears subordinate within the Hulu-led structure.

Previously we covered a bearish thesis on Gray Television, Inc. (GTN) by Tyler Moody in November 2024, which highlighted the company’s high leverage and exposure to declining broadcast TV revenue. The stock has depreciated approximately 1.27% since our coverage as the thesis played out. The thesis still stands. Simeon McMillan shares a similar view, emphasizing structural fragility in both legacy media and streaming through fuboTV Inc. (FUBO).

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.