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FUBO Stock Just Found Some Magic, Patience Will be Rewarded
Posted On Nov 06, 2025 by Chris Markoch
FuboTV Inc. (NYSE: FUBO)reported earnings on November 4. FUBO stock has regained its footing after a slight pullback. The question is what's fueling interest in the company, and is the company's 198%rally in 2025 sustainable?
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The answer to both questions would be yes, but it may require patience for a quarter or two. Just a few days before FuboTV announced earnings, the company finalized a deal with The Walt Disney Company (NYSE: DIS). The deal will merge FuboTV with Disney's Hulu + Live TV operations. FUBO shareholders will hold roughly 30% interest in the newly combined business.
As many sports fans know, Disney, which owns the ESPN family of networks is engaged in a carriage fight with YouTube TV, owned by Alphabet Inc. (NASDAQ: GOOGL). That has sports fans on YouTube TV considering alternatives for watching content that's currently unavailable to them. This deal may provide a compelling reason to switch.
That’s the thought for Disney as it has become the second-largest virtual pay-TV provider in the United States. It now has nearly six-million subscribers in North America.
But if you're reading this article, it's fair to ask what this means to you as a current shareholder or potential investor?
FUBO Stock Had a Lot of Growth Priced In
FUBO stock is up over 198% in 2025. That's because the initial announcement of the Disney deal happened in January. Prior to that, FuboTV was languishing as a literal penny stock with a price under $1. As a stand-alone streaming service, there wasn't much to get excited about.
I'm a marketing guy, which is why I frequently look for a stock with a good story. One thing that attracted me to FUBO stock several years ago was the company's plans to launch an interactive sportsbook within the platform.
In marketing terms, that would have been a unique selling proposition. However, that didn't emerge for regulatory reasons, and the opportunity to be unique is lost.
The deal with Disney gave the stock some needed juice and more importantly, immediate credibility. While the partnership may not be a unique selling proposition, it does give consumers a reason, beyond, price to become a subscriber.
A lot of that growth, however, was already priced in heading into earnings. That meant FuboTV didn't just have to beat expectations; it had to crush them.
Highlights From Q3 Earnings
Revenue for the quarter came in at $377.20 million, beating expectations of $361.33 million by 4.3%. However, revenue was down 2.3% on a year-over-year (YoY) basis.
The highlight of the report was clearly earnings. FuboTV came in with positive adjusted earnings per share (EPS) of two cents; analysts were expecting negative EPS of four cents. This is bullish because it means the company is profitable on a non-GAAP basis without the extra synergies brought in by Disney.
Free cash flow remains a concern. It came in negative this quarter, reversing where it was in the prior year. However, the company's debt picture looks very manageable, and the overall fundamentals are improving.
Risks to the Bullish FUBO Stock Thesis
The most obvious risk I see is that, at some point, ESPN and YouTube TV will kiss and make up. That may be measured in days or weeks, but both sides need each other.
Even with FuboTV's audience, Disney will still want ESPN to have YouTube TV's reach of over 10 million potential viewers, many of whom will not be adding an additional streaming service to their lineup even on an interim basis.
A secondary risk comes from institutional investor activity. Only about 39% of the FUBO stock float is owned by investors. However, short interest in the stock is elevated at 19%. And institutional selling outweighed buying in the last two quarters. That’s a confirmation that the "big money" sees a lot of growth already priced into the stock.
There's also a macroeconomic risk. This earnings season has confirmed the existence of a K-shaped economy. The consumers on the downward leg of that K are feeling pinched. And streaming services are at the top of the list of discretionary expenses to get cut. That could lower the ceiling on growth expectations for 2026.
Is FUBO Stock a Buy or One to Watch?
That answer will depend on your risk appetite. The long-term payoff for FUBO stock is probably several quarters if not a year or more away. That means, if you're not currently a shareholder, there's no reason to take a full position. However, this may be a time to start building one and adding as you get more confirmation of future growth.
If you don't want to put capital at risk, there's nothing wrong with adding it to a watch list. Options trading is always available, but there isn't a high volume on the company's options chain. A better choice may be to simply place a limit order and only buy FUBO stock at the price you want.
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