10 Worst Broadcasting Stocks to Buy According to Short Sellers

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1. FuboTV Inc. (NYSE:FUBO)

Short % of Shares Outstanding As of August 15: 13.84%

Number of Hedge Fund Holders: 13

FuboTV Inc. (NYSE:FUBO) is an American streaming television service serving customers in Canada, Spain, and the US, focusing primarily on channels that distribute live sports, providing a convenient and accessible way for viewers to watch their favorite games and other live television content.

The company successfully blocked a proposed joint venture by Disney, Fox, and Warner Bros. Discovery on August 16, which would have controlled a significant portion of live broadcast sports content. The CEO argued that this would have harmed consumers and FuboTV’s business.

FuboTV Inc. (NYSE:FUBO) introduced The Triple Play, a new ad format for its CTV platform on September 6. This allows brands to feature branded video content prominently on the company’s home screen. Advertisers can customize the ad experience with QR codes, mid-roll spots, and themed backgrounds. The Triple Play reflects its ongoing innovation in CTV advertising.

Total revenue for the company increased by 25.01% year-over-year in Q2 2024. Advertising business revenue rose 14%, while paid subscribers grew by 24%. The growth mainly came from North America.

Management expects North American subscribers to grow 7% year-over-year at the midpoint in 2024. The projected number of subscribers is between 1.725 million and 1.745 million. 

It repurchased $46.9 million of convertible debt, improving its financial health and shareholder value. This strategic move demonstrates the company’s commitment to providing affordable sports entertainment and makes it a promising investment.

13.84% of the company’s outstanding shares were shorted by August 15. Currently, 13 hedge fund holders hold long positions here, Highbridge Capital Management being the largest one with a position of $11,975,000.

While we acknowledge the growth potential of FuboTV Inc. (NYSE:FUBO), our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than the stocks on our list but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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