FuboTV (FUBO) has been a captivating stock over the last few months. Will that fascination hold true after the company reports earnings?
The earnings are scheduled for release after the close of trading on Tuesday. Both bulls and bears are hopeful they’ll hear what they need to drive shares in their respective directions.
The stock has been downright volatile, looking more like an EV SPAC than a streaming-video company. While stocks like Roku (ROKU) have enjoyed a mostly uninterrupted march higher, it’s been anything but for fuboTV.
Over a five-day stretch in December, shares burst higher by more than 130% to new highs. Incredibly though, fuboTV gave up all of those gains and then some after the stock declined in seven straight sessions.
Bears were calling the stock a great short, while hedge funds like David Einhorn’s Greenlight Capital - with Einhorn being a very notable short seller himself - came to the stock’s aid with their bull case.
FuboTV stock again ripped higher in late January with the Reddit short-squeeze hoopla driving up stocks with high short-interest measures. Notably though, the stock didn’t make a new high.
After the Reddit-induced squeeze higher, fuboTV stock went on another painful skid for the bulls.
Finding support near $33 though and well off the highs, the bulls may have an argument to be made on earnings. Particularly if the results aren’t bad enough to force buyers out of the mix.
With Monday’s solid rally, shares are now well above $33. If fuboTV can maintain this large of a buffer into the print, I would really like to see $33 continue to hold as support should we see a post-earnings dip.
Below will put the 100-day moving average in play — the stock’s first real test of this mark.
A drop below the 100-day moving average would put the key $26 area in play.
On the upside, the roadmap is fairly clear, although that doesn’t necessarily make it easy. I will be watching for a close over $40.50.
That will put fuboTV over the 10-day and 50-day moving averages. The latter was solid support before failing last week and turning into resistance.
Above $40.50 will also put the stock above a key VWAP measure, putting the 21-day moving average in play. Currently, that measure is near $44.
If the stock hurdles $44, it puts the 61.8% retracement in play at $47.17, followed by $52.50.
The chart may look a bit busy, but the levels are pretty clear. Let’s see the stock’s initial reaction, then go from there.