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 $3.1800 as of June 23^rd. FUBO’s trailing P/E were 15.90 according to Yahoo Finance.

FuboTV (NYSE: FUBO) is facing growing pressure as its core business model falters. Despite management’s emphasis on meeting Q1 2025 revenue targets, deeper fundamentals tell a more troubling story. The company’s North American subscriber base declined by 3% year-over-year, reversing previous growth trends, while international subscribers dropped 11%. Notably, the so-called “international” segment only includes Canada and parts of Spain—hardly global in scale.

Revenue growth stemmed entirely from price hikes, not user expansion, which signals low-quality growth and an unsustainable model in a fixed-cost business like streaming. Advertising revenue also fell 17% YoY, attributed to the loss of Televisa Univision content, yet management failed to backfill this revenue shortfall. With Q2 revenue guidance projecting a 14% decline, there’s little optimism on the horizon.

Although bulls point to upcoming content cost savings, the reality is that shrinking revenue overshadows any cost-cutting initiatives. The merger with part of Hulu hasn’t sparked a turnaround; investors increasingly view it as cosmetic rather than strategic. Despite its decade-long existence, Fubo has failed to achieve broad user adoption. Even bullish cases, based on aggressive forecasts, suggest a best-case valuation of just over $3 per share—far below recent highs.

Notably, both the CEO and CFO sold shares in the $4–5 range, raising questions about internal confidence. With subscriber attrition, evaporating ad revenue, weak international presence, and unconvincing growth catalysts, Fubo appears structurally challenged. The stock has dropped nearly 20% recently, and with no strong drivers in sight, further underperformance versus the S&P 500 is expected over the next 18 months.

Previously we covered a bearish thesis on Gray Television, Inc. (GTN) by Tyler Moody in November 2024, which highlighted its high debt, political ad dependency, and structural decline. The stock has depreciated by ~7.8% since. The thesis still stands as key risks persist. Simeon McMillan shares a similar view on fuboTV but emphasizes subscriber losses and weak revenue quality.

fuboTV Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held FUBO at the end of the first quarter, which was 13 in the previous quarter. While we acknowledge the risk and potential of FUBO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None.