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 bears’ thesis on FUBO. FuboTV Inc.'s share was trading at $2.2300 as of January 30th. FUBO’s trailing and forward P/E were 7.22 and 52.63 respectively according to Yahoo Finance.

FuboTV Inc. operates as a live TV streaming company. It focuses on the provision of sports, news, and entertainment program. FUBO is expected to underperform in 2026 as competitive, structural, and financial pressures converge to weaken its already fragile business model. The most significant threat comes from YouTube TV, which plans to launch sports-focused “skinny bundles” in 2026.

Fubo has long positioned itself as a sports-first digital MVPD, but this differentiation is at risk as YouTube TV removes its biggest drawback—forcing users into a full bundle—while leveraging superior scale, infrastructure, and pricing power. With roughly 10 million subscribers, YouTube TV is nearly twice the size of the combined Fubo and Hulu + Live TV entity, which totals around 6 million subscribers, and it is growing faster. Backed by Alphabet, YouTube TV can operate at breakeven or a loss to gain share, a luxury Fubo cannot afford given its thin margins.

The merger with Hulu + Live TV also fails to provide a meaningful growth catalyst. Hulu + Live TV subscribers declined 4% year-over-year to 4.4 million, underscoring broader consumer migration away from large linear bundles. While Hulu’s SVOD business is growing rapidly, the live TV segment Fubo is absorbing resembles a structurally declining legacy product. Estimated synergies of $120 million are modest and insufficient to offset weak organic growth.

Fubo’s own Q3 2025 results reinforce these concerns, with revenue declining year-over-year, falling ARPU, and limited advertising leverage. Management’s cautious communication following the merger suggests expectations for lower forward guidance. Taken together, intensifying competition, stagnant subscriber trends, and financial strain point to a challenging outlook, making FuboTV a bearish long-term investment heading into 2026.

Previously, we covered a bearish thesis on Gray Television, Inc. (GTN) by Tyler Moody in November 2024, which highlighted the structural decline of broadcast TV, excessive leverage, and reliance on volatile political advertising. GTN’s stock price has depreciated by approximately 3.83% since our coverage due to weakening ad demand and balance sheet stress. Simeon McMillan shares a similar view but emphasizes competitive pressures, subscriber stagnation, and margin compression at FuboTV Inc. (FUBO).

FuboTV Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 11 hedge fund portfolios held FUBO at the end of the third quarter which was 13 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.