A few months back, fuboTV (NYSE:FUBO) was a heavy favorite. As you may recall, investors went for this sports betting and sports streaming play, in late 2020 and early 2021. Yet after its two short-lived rallies? FUBO stock tanked, falling from between $50-$60 per share, before finding its floor at just under $20 per share.

Since then, it has traded sideways, bouncing between $20 and $30 per share. It’s not quite a favorite anymore, but I wouldn’t call it an underdog either. Simply put, the crowd has mixed feelings for fuboTV today.

Some appreciate its potential. Using its streaming service as a means to attract customers, it stands to grab a piece of the fast-growing sports wagering market. Others? They’re taking a more cautious view.

Either they’re waiting for it to make more progress with its sportsbook unit. Or they want to see how it performs in the first few markets it has established sportsbook operations.

But while the crowd is taking their time, you may want to dive in. Ahead of it becoming a heavy favorite once more. Due to not only the potential success of its sportsbook business, but due to the future growth of its streaming operation.

The Latest With FUBO Stock

Like I wrote last month, fuboTV is moving along with obtaining sportsbook market access across the United States. So far, it has set up shop in five U.S. states (Arizona, Indiana, Iowa, New Jersey and Pennsylvania). With these five markets under its belt, the company’s sportsbook platform expects to launch by the end of the current fiscal quarter (ending December 31, 2021).

What does that mean for FUBO stock?

For now, investors as a whole are still unsure whether this platform can compete against first movers in the space. These established rivals already control a big share of the above-mentioned five sports betting markets.

As you’re likely aware, several gaming companies currently dominate the U.S. sports wagering market. But as it offers sports fans with seamless integration of sports wagering with sports streaming? I wouldn’t discount its chances of gaining market share from the so-called “first movers.”

Once the initial numbers from its sportsbook operations come in, and show this is the case? FuboTV shares could get out of their recent slump, and start moving to higher prices. News of it obtaining licensing/market access in more states will also likely help move the needle.

Don’t Forget the Opportunity With Its Streaming Operation

The focus with FUBO stock may be on its sportsbook catalyst. But don’t forget that growth of the company’s streaming business could also serve as a catalyst.

Back in August, after fuboTV reported better-than-expected quarterly results, two sell-side analysts upped their price targets, in large part due to the possibility of it benefiting from the “cord cutting” trend. Specifically, as Oppenheimer’s Jed Kelly pointed out, the company stands to continue seeing high subscriber growth, as its platform is one of the few alternatives to cable TV that provides (in Kelly’s words), “a comparable viewership experience at a lower cost.”

I know, you may be wondering, “how does fuboTV have this content, when the established media companies are paying billions for it?” Good question. While on the surface this company appears to be an upstart, competing against the legacy media companies, the details show that’s not the case. Instead, it’s more accurate to say it has partnered with them.

How so?

Not only are there scores of popular sports channels available for viewing through the app. Several of the big media conglomerates hold stakes in the company. This bodes well in several ways. Mainly, it may signal the company isn’t under threat of getting “squeezed out” of the streaming business. Along with this, big media’s investment in the company may be the first step toward one or several of these names buying fuboTV outright.

The Verdict on fuboTV

I wouldn’t buy it for only this reason. But the takeover target angle is certainly of interest when it comes to fuboTV. It’s not just its big media partners that could be interested in buying it. The company’s larger rivals in the gaming industry may see it as a great bolt-on acquisition as well.

Takeover potential aside, consider this a situation to keep on your radar. In recent months, it may have become less of a favorite. Yet, in the months ahead, as its sportsbook operation launches and expands, and as its streaming business captures more subscribers, sentiment stands to shift back.

With this, you may want to give FUBO stock a closer look before the market crowns it a winner.

— Louis Navellier and the InvestorPlace Research Staff

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Source: Investor Place