The year 2020 has been incredible for initial public offerings (IPOs) in the technology sector, and December is shaping up to be a massive month for companies making public market debuts. Tech companies worth more than a combined $100 billion will be issuing their first publicly traded stock this month, according to England’s The Telegraph, and investors will have a chance to build ground-floor positions in potentially explosive companies…
Read on for a look at three IPO stocks that stand out as intriguing long-term investments: one that’s recently made its market debut, and two others that are on track to hit the market in December.
FuboTV (NYSE:FUBO) is a sports-focused streaming entertainment company that had its initial public offering on the New York Stock Exchange (NYSE) in October. Shares have already climbed roughly 170% from the company’s debut at $10 per share, but the stock could blow past its current price range.
The company’s core streaming business generates sales from both subscriptions and advertising, with paid subscriptions accounting for the majority of revenue. Rather than taking the low-cost, pared-down approach employed by many other “skinny bundle” streaming services, the company’s base package offers an expansive collection of sports content from over 110 different national and regional sports channels in a $65 per month subscription service. Users can also pay to upgrade and gain access to even more content.
Sports content remains one of the biggest draws in the entertainment world, and Fubo’s service bundling game broadcasts from major leagues including the NFL, NBA, and MLS is a great package for enthusiasts and is adding members at a rapid clip. The company ended its third quarter with 455,000 subscribers, up 58% year over year. Overall revenue in the quarter rose 71% year over year on an adjusted basis, with streaming subscription revenue up 64% compared to the prior-year period and advertising revenue soaring 153%.
Fubo is also expanding into the online sports-betting space and recently purchased online-gambling specialist Balto Sports to accelerate the initiative. Combining its growing audience of dedicated sports enthusiasts with an online gambling platform is an intriguing prospect that could turn into a huge growth driver.
With the company valued at roughly $1.8 billion and trading at about 7.3 times this year’s expected sales, FuboTV is a young business with a growth-dependent valuation. On the other hand, a premium sports streaming package could prove to be a disruptive service in the pay-TV space, and the integration of an online betting platform presents additional paths to growth.
Airbnb has already been disrupting the hotel and short-term property rental markets for years, and investors will soon have a chance to build a position in the potentially explosive business. An official date for the company’s public market debut…
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