This is Why Fubotv Inc. (FUBO) is a Buy After Pull Back

Fubotv Inc. (NYSE:FUBO) is one of the best high-return penny stocks to buy right now. On February 5, analysts at Seaport Global Securities upgraded Fubotv Inc. (NYSE:FUBO) to a Buy from Neutral and reiterated a $3 price target.

The positive stance is in response to the company’s post-merger deal with Disney’s Hulu Live. However, the stock has come under pressure amid concerns of a potential business model shift following the merger. A lack of guidance and the announcement of a reverse stock split have also rattled sentiment on Wall Street.

Seaport Global views the recent stock pullback as an interesting opportunity despite the ongoing market uncertainty. Likewise, the research firm has dispelled concerns about the potential loss of NBCU content, insisting it will not occur, as some FuboTV customers are poised to migrate to Hulu Live, which still carries the content.

On February 6, Hulu LLC provided written consent to amend FuboTV’s certificate of incorporation, paving the way for a reverse stock split of the company’s Class A and Class B common stock. The stock split ranges from 1 for 8 to 1 for 12.

Fubotv Inc. (NYSE:FUBO) is a sports-first, live TV streaming service that functions as a cable TV alternative. It allows users to stream content via smart TVs, mobile devices, and computers without a contract. The platform emphasizes a personalized, interactive viewing experience, featuring 4K streaming and cloud DVR.

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. This article is originally published at Insider Monkey.