Is FUBO a good stock to buy? 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 $13.29 as of April 20th. FUBO’s trailing and forward P/E were 3.41 and 29.59 respectively according to Yahoo Finance.
FuboTV Inc. operates as a live TV streaming company. FUBO reported its Q4 FY2025 earnings, confirming the bearish thesis that the company’s growth story is effectively over. Subscriber counts declined to 6.2 million, down from 6.3 million year-over-year, signaling a shrinking user base despite the merger with Hulu + Live TV.
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Advertising revenue fell 4% YoY to $123.5 million, underscoring the company’s inability to compete with larger streaming rivals like YouTube TV and Netflix, which leverage scale and ecosystem advantages to dominate the market.
The announced reverse stock split, ranging from 1-for-8 to 1-for-12, is a clear signal of distress, reflecting a stock price so low that institutional investors risk being unable to participate, while also serving as financial engineering rather than a solution to underlying operational problems.
Fubo’s pro forma adjusted EBITDA of $41.4 million masks a pro forma net loss of $46.4 million, highlighting the company’s continued inability to generate meaningful free cash flow. Management’s decision to withhold future guidance indicates a lack of visibility into the company’s financial floor, reinforcing concerns about structural weaknesses in its business model. Content limitations, particularly the loss of NBCUniversal programming and the inability to carry major sporting events like the Winter Olympics, exacerbate subscriber churn, while the new reseller arrangement with ESPN positions Fubo as a downstream utility rather than a direct competitor.
With shrinking subscribers, declining ad revenue, persistent losses, and strategic dependence on larger platforms, FuboTV appears trapped between major streaming competitors without a viable path to profitability. The company faces a grim outlook for 2026, and the combination of operational, financial, and competitive pressures validates the Underperform rating, making Fubo a high-risk investment with limited upside potential and high downside risk.
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, reliance on cyclical political ad revenue, and declining broadcast TV audience. GTN’s stock price has appreciated by approximately 31.76% since our coverage. Simeon McMillan shares a similar bearish view but emphasizes FuboTV Inc.’s shrinking subscribers, declining ad revenue, and strategic dependence on larger streaming platforms, reinforcing a high-risk investment outlook.
FuboTV Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 23 hedge fund portfolios held FUBO at the end of the fourth quarter which was 11 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 doing so within a shorter time frame. If you are looking for an AI stock that is more promising than FUBO and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
