FuboTV stock pops on Wedbush upgrade

Yahoo Finance Live anchors discuss Wedbush's upgrade on FuboTV shares.

Video transcript

[AUDIO LOGO]

JULIE HYMAN: Let's talk about that other call real quick here that we had on Fubo-- speaking of football-- on FuboTV here. This coming from Michael Pachter over at Wedbush, who is upgrading this to outperform from neutral. The stock has really plunged this year so part of it has to do with valuation. That there's an attractive entry point here.

According to Pachter, FuboTV has a solid head start in offering live sports programming to its subscribers, thriving and growing advertising business. The issue of the business has been cash burn. And so he talks about that the company needs to focus on raising capital and cutting its cash burn to extend its cash runway. He says, we're confident the company can do both. Although, there could be some dilution from any kind of capital raise.

BRAD SMITH: [LAUGHS] Get you a streaming service that can do both. I mean, at the end of the day, for Fubo as well-- and I think they make a great point when it comes to the sports rights and being able to have that streaming capacity. Sports is going to be a major-- major kind of opportunity that a Netflix is not going into getting sports licensing out, right? Sure, there are other ways that they're trying to backfill for all the lost "30 for 30" content.

But at the end of the day, for the sports rights that have been continued to be either competed for-- whether that's by an Amazon and "Thursday Night Football" or whether that's even by an Apple, which we'll talk about a little bit later on-- I think there's so much opportunity for the annexation of streaming to sports.

It's really just a matter of how much all of these brands in the streaming space are willing to pony up for that new customer acquisition and hoping that they'll consume some of the other content that they're paying millions, if not billions of dollars to produce over time, too.

JULIE HYMAN: Yes, indeedy.

BRAD SMITH: Yeah.