The Law Offices of Frank R. Cruz has announced it will conduct an investigation of FuboTV Inc. on behalf of investors regarding Fubo’s possible federal security law violations. The investigation comes after a series of reports accused fuboTV of running a core subscription business that is “structurally unprofitable”.
The first report was published by Kerrisdale Capital on December 30, 2020. The report argued that Fubo’s core subscription business was “structurally unprofitable”, its valuation was “absurd”, and its acquisition of Balto Sports was a “foolish” attempt to enter the highly competitive sports wagering industry.
Furthermore, the report questioned Fubo’s decision to drop content to manage costs and argued it would “cause eventual spikes in churn and SAC.” After the report went public, Fubo stock fell 25.72%. It would be further damaged on January 4, 2021 by an article published by the Motley Fool which claimed Fubo was “nowhere close to turning a profit”.
The Motley Fool article also questioned the company’s adjusted contribution margin number and said it was a meaningless number. It went on to say that the company reporting such a misleading metric was a huge red flag and enough reason to “stay far away from the stock.”
Once again, Fubo’s stock dropped by 14% and closed at $24.24 on January 4. Since then, FUBO has rebounded topping $43 a share on the last day of trading. The Law Offices of Frank R. Cruz would like shareholders who suffered a loss to click here to participate.
Jay Skelton is a fan of all television shows and movies. He tries his best to keep up with the latest foreign television shows and movies. Jay loves skinny dipping in the dark too.
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