Why fuboTV Stock Is Soaring Today

fuboTV (NYSE: FUBO) stock is seeing big gains in Thursday's trading. The streaming television company's share price was up 11.5% as of 3:15 p.m. ET despite the S&P 500 index and the Nasdaq Composite index both being down 0.4%.

fuboTV stock is gaining ground today in conjunction with new reports on television ratings for 2024. Sports content, which is the lynchpin of the the company's service offerings, posted another very strong year.

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fuboTV posts big gains on sports viewership data

2024 was another great year for sports programming, and fuboTV stock is getting a boost from strong ratings numbers. While there have been recent concerns about ratings for the NBA, the league ended the year on a strong note. As of the most recent update, NBA viewership on ESPN platforms was up 5% year over year. After factoring viewership on the TNT channel, viewership for the league was still down 5% compared to the prior-year period -- but strong performance for games on Christmas helped allay concerns. Prior to the boost from Christmas broadcasts, league viewership had been down 18% year over year.

Meanwhile, the NFL posted another year of stellar performance. The football league claimed 45 out of the 100 top-rated broadcasts last year, and it looks like performance should only get better leading up to the Super Bowl in February.

What comes next for fuboTV?

fuboTV has been an early mover in the sports-focused streaming space and has offered customers alternatives to traditional cable packages. Last quarter, the company saw its revenue increase 21% year over year to reach $377 million. On the other hand, the stock's performance has been poor lately.

Despite today's gains, fuboTV stock is down roughly 56% over the last year. Resource-rich competitors including Amazon and Netflix have been moving in on its turf, and this dynamic appears to be affecting the business's growth trajectory. For the fourth quarter, fuboTV has guided for sales between $426 million and $446 million -- representing annual growth of 9% year over year at the midpoint. With competition increasing and sales growth decelerating, fuboTV may need to significantly outperform its Q4 target in order to extend its bullish streak.

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Netflix, and fuboTV. The Motley Fool has a disclosure policy.