1 Stock Up 90% This Year to Buy and Hold for 10 Years
While it's been a volatile year for equity markets, some companies have performed exceptionally well. FuboTV (NYSE: FUBO), a sports-focused streaming platform, is one such example: The company's shares are up by 90% year to date. The secret behind FuboTV's performance isn't much of a secret: The company is merging with a competing streaming service that will enhance its position in the field. These new developments make FuboTV's stock worth holding on to for the next decade, despite it already soaring this year.FuboTV faced significant headwinds entering the year. The company's paid subscriptions growth in North America was declining while it lost members in its rest of the world segment. The streaming specialist was also consistently unprofitable, although it had made some improvements on that front. FuboTV's most crucial challenge, though, was potential competition from a proposed sports streaming platform called Venu.This initiative had the backing of three media giants: Disney, Fox, and Warner Bros Discovery. Considering FuboTV was already having difficulty increasing its market share and turning in a profit, a challenge from this platform might have meant its demise. Since Venu would have been a small part of the businesses of those three media juggernauts, they could have operated the platform at a loss for a while to attract enough customers and kill the competition, before eventually increasing their prices.Continue reading
While it's been a volatile year for equity markets, some companies have performed exceptionally well. FuboTV (NYSE: FUBO), a sports-focused streaming platform, is one such example: The company's shares are up by 90% year to date. The secret behind FuboTV's performance isn't much of a secret: The company is merging with a competing streaming service that will enhance its position in the field. These new developments make FuboTV's stock worth holding on to for the next decade, despite it already soaring this year.
FuboTV faced significant headwinds entering the year. The company's paid subscriptions growth in North America was declining while it lost members in its rest of the world segment. The streaming specialist was also consistently unprofitable, although it had made some improvements on that front. FuboTV's most crucial challenge, though, was potential competition from a proposed sports streaming platform called Venu.
This initiative had the backing of three media giants: Disney, Fox, and Warner Bros Discovery. Considering FuboTV was already having difficulty increasing its market share and turning in a profit, a challenge from this platform might have meant its demise. Since Venu would have been a small part of the businesses of those three media juggernauts, they could have operated the platform at a loss for a while to attract enough customers and kill the competition, before eventually increasing their prices.
