Shareholders of fuboTV would probably like to forget the past six months even happened. The stock dropped 65.9% and now trades at $1.18. This might have investors contemplating their next move.

Is now the time to buy fuboTV, or should you be careful about including it in your portfolio? Get the full breakdown from our expert analysts, it’s free.

Why Do We Think fuboTV Will Underperform?

Despite the more favorable entry price, we don't have much confidence in fuboTV. Here are three reasons we avoid FUBO and a stock we'd rather own.

1. Weak Growth in Domestic Subscribers Points to Soft Demand

Revenue growth can be broken down into changes in price and volume (for companies like fuboTV, our preferred volume metric is domestic subscribers). While both are important, the latter is the most critical to analyze because prices have a ceiling.

fuboTV’s domestic subscribers came in at 6.2 million in the latest quarter, and over the last two years, averaged 48.8% year-on-year growth. This performance was underwhelming and suggests it might have to lower prices or invest in product improvements to accelerate growth, factors that can hinder near-term profitability.

2. Operating Losses Sound the Alarms

Operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses – everything from the cost of goods sold to advertising and wages. It’s also useful for comparing profitability across companies with different levels of debt and tax rates because it excludes interest and taxes.

fuboTV’s operating margin has been trending up over the last 12 months, but it still averaged negative 6.2% over the last two years. This is due to its large expense base and inefficient cost structure.

3. Cash Burn Ignites Concerns

Free cash flow isn't a prominently featured metric in company financials and earnings releases, but we think it's telling because it accounts for all operating and capital expenses, making it tough to manipulate. Cash is king.

Over the last two years, fuboTV’s demanding reinvestments to stay relevant have drained its resources, putting it in a pinch and limiting its ability to return capital to investors. Its free cash flow margin averaged negative 4%, meaning it lit $4.03 of cash on fire for every $100 in revenue.

Final Judgment

fuboTV falls short of our quality standards. Following the recent decline, the stock trades at 1.2× forward EV-to-EBITDA (or $1.18 per share). While this valuation is optically cheap, the potential downside is huge given its shaky fundamentals. There are more exciting stocks to buy at the moment. We’d suggest looking at our favorite semiconductor picks and shovels play.

High-Quality Stocks for All Market Conditions

The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.