We recently compiled a list of the 10 Hottest Smid-Cap Stocks So Far In 2025. In this article, we are going to take a look at where fuboTV Inc. (NYSE:FUBO) stands against the other smid-cap stocks.
As the name suggests, smid-cap stocks have a valuation between $200 million and $20 billion. The definition is pretty flexible, but I’ll be working with the broadest one. Most stocks on the market fall into this category, so I think it is a good way to check the general pulse of the broader economy and look into some up-and-coming companies that may one day be the large caps of tomorrow.
We will be taking a look at some of them in this article by looking through stocks within the aforementioned market cap, sorted by their year-to-date gains so far in 2025. Do note that OTC stocks will not be included in this list.
You should keep in mind that while some of these stocks could be good buys, there is also a significant downside risk to stocks that have gained a lot recently.
Huge crowds in a sports stadium with their smartphones streaming a live game.
fuboTV Inc. (NYSE:FUBO)
YTD Performance: 161%
FuboTV (NYSE:FUBO) calls itself a sports-first cable TV replacement, and it makes most of its money from subscriptions. It also pulls in revenue from advertising, which is a growing part of the business. In the United States, the company offers more than 400 channels with live sports, news, and entertainment. Management is especially proud of its robust sports lineup, and that’s why many people see it as an alternative to traditional cable bundles.
Fubo posted 21% year-over-year revenue growth and 1.613 million subscribers in North America in Q3 2024. That suggests the company has been on a solid growth track. The basic channel package is not the only subscription tier, and premium or add-on packages account for a good chunk of revenue. Still, regular subscription fees remain the main driver. Advertising helps, but it’s currently smaller, though the company hopes ad revenue will climb over time.
Fubo has been in the headlines because it just announced it will combine with Disney’s Hulu + Live TV. Disney will own 70% of Fubo, and the merged operation will still trade on the stock market under the Fubo name. This plan has boosted Fubo’s share price. It seems investors are excited about the combined subscriber base, which could exceed six million if you add Fubo’s 1.6 million premium accounts to Hulu + Live TV’s 4.6 million subscribers. That’s a lot of potential eyeballs, so it’s no surprise the market cheered. It’s good news for Fubo because it will get access to Disney’s marketing might and its sports properties.
Fubo’s management has also made noise about trimming content costs. The company has been adding FAST (free ad-supported streaming TV) channels, which do not carry the same expensive licensing fees. That move will probably help the company’s profit prospects. I think the combination of premium sports content, cheaper programming through FAST channels, and more people cutting the cord will help Fubo’s revenue keep climbing. The deal with Disney should give it a wider runway to attract subscribers who still want a big sports bundle at a lower price than cable.
In my opinion, Fubo’s stock is up so much because investors see it as a winner in the shift away from traditional TV. Adding Hulu + Live TV to the mix gives it a bigger audience and, presumably, more leverage in future content negotiations. The expanding subscriber base and possible advertising upside are big draws for people who think the combined service can land some muscular profits down the road.
Overall FUBO ranks 1st on our list of the hottest smid-cap stocks so far in 2025. While we acknowledge the potential of FUBO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than FUBO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 10 Hottest Mid-Cap Stocks So Far in 2025 and 10 Hottest Large-Cap Stocks So Far in 2025
Disclosure: None. This article was originally published at Insider Monkey.
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