Up 167% so far this year, small-cap stock %FuboTV (NYSE: $FUBO) is in the midst of a blistering rally.
Based in New York City, fuboTV began life as a sports streaming service. It has since branched out to include news channels and specialty broadcasters such as The History Channel.
However, sports remain the company’s bread-and-butter, with consumers subscribing to get access to Premier League soccer games, NFL football games, and Major League Baseball contests.
The company’s stock recently jumped 5% in a single trading session after it announced that it had secured the rights to broadcast live UEFA Champions League soccer matches.
FUBO stock also got a boost when it announced plans to merge with %Disney (NYSE: $DIS) Hulu + Live TV, which will help distribute its content, and that it also plans to launch a Pay-Per-View option.
The deal will see Disney own 70% of the combined company, which will continue operating under the Fubo name and with Fubo’s existing management team.
The combined entity will be the second-largest streaming service in North America with 6.2 million subscribers.
However, Disney is not taking over fuboTV, which will remain a separate business and stock.
fuboTV now offers Disney content on its streaming platform, including Disney Channel and Disney Jr. television shows.
The deal with Disney and the additional sports content has sent FUBO stock on a bull run this year, making it a top-performing security.
A market capitalization of $1.29 billion U.S. makes fuboTV a small-cap stock. And a valuation of 14 times future earnings estimates is reasonable in the current market.
However, trading at $3.77 U.S. per share makes fuboTV a penny stock defined as any security worth less than $5.
Also, the stock has been volatile in the past. Even with this year’s big move higher, FUBO stock is still down 64% over the past five years.
Still, things are looking up for the small cap streaming company.
