Revealed: Likefolio Investor’s “Great $2 A.I. Moonshot”

Dylan Rieger // Stocks

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July 27  

Welcome back to the channel that steals stock picks from expert stock pickers and gives them away for free.

Today we're going back into the world of AI to figure out what the "great $2 AI moonshot is."

This is a presentation from the Swan brothers, who are launching a new service called Likefolio Investor.

They want you to pay to learn the name of the great $2 AI moonshot, but we've got you covered.

The Swan brothers left behind a bunch of clues in the presentation that made figuring out the stock simple.

I reveal it in the video below, along with information on whether it's a good investment or not.

Let's get started!


Transcript Of Video

Time to reveal the stock now. The $2 moonshot the Swan brothers are hyping is Fubo.

What is Fubo?

Fubo is a streaming service that lets you watch live sports, TV shows, movies and news without cable. You can stream over 300 channels on your TV, phone, tablet, computer and other devices. Fubo has something for everyone, whether you're a fan of soccer, football, basketball, baseball, hockey, golf, tennis or any other sport. You can also watch popular networks like ABC, CBS, FOX, NBC, MTV, VH1, Showtime, HGTV, MSNBC, SYFY, USA, Bravo and more. 

How Does Fubo Use A.I.

Fubo uses AI to enhance its streaming platform and create a more interactive and personalized live TV experience for its viewers. Here are some of the ways Fubo uses AI:

- Fubo acquired Edisn.ai, an AI-powered computer vision platform that can recognize and track key objects in live video feeds, such as athletes, actors, brand logos, products and events. 

-Fubo can use Edisn.ai's technology to improve its interactive features, such as predictive games, FanView and Fubo Sportsbook, by better detecting and synchronizing play-by-play data feeds with live and time-shifted action on the screen.

-Fubo can also use Edisn.ai's technology to improve its electronic program guide and cloud DVR by automatically detecting when a live sporting event has ended or gone into overtime.

-Fubo can also use Edisn.ai's technology to expand its ad tech capabilities, such as better detection of ad breaks and targeted contextual advertising, as well as creating the potential for integrated e-commerce

-Fubo is expected to make AI its main focus for the rest of 2023 and beyond, and test its AI integrations in France first, where it plans to acquire Molotov, the leading live TV streaming platform in the country. 

Fubo is using AI to create a more immersive and engaging live TV streaming experience for its customers, especially sports fans. Fubo is leveraging its acquisition of Edisn.ai and its computer vision technology to innovate its platform and offer more value to its viewers. Fubo is also testing its AI features in different markets before rolling them out globally.

Reasons To Invest In Fubo

If you're looking for a potential investment opportunity in the streaming industry, you might want to consider Fubo. Here are some of the reasons why someone would want to invest in Fubo:

- Fubo has a loyal and growing customer base. Fubo had 1.445 million subscribers in North America and 420,000 subscribers in the rest of the world as of 2022, representing a 22% year-over-year increase. Fubo's customers are also highly engaged, with an average of 155 hours watched per month per subscriber. 

- Fubo has a strong revenue growth and improving margins. Fubo's revenue increased by 58% year-over-year to $1.01 billion in 2022, driven by higher subscription and advertising revenue. Fubo's adjusted EBITDA margin improved from -38% in 2021 to -25% in 2022, reflecting its operational efficiency and scale benefits. 

- Fubo has a differentiated product offering and innovation strategy. Fubo is the only streaming service that focuses primarily on sports content, which gives it an edge over its competitors in attracting and retaining sports fans. Fubo also offers interactive features, such as predictive games, FanView and Fubo Sportsbook, that enhance the viewing experience and generate additional revenue streams. Fubo also leverages AI and computer vision technology from its acquisition of Edisn.ai to create a more personalized and immersive live TV experience for its customers. 

- Fubo has a global expansion potential and strategic partnerships. Fubo operates in the US, Canada, France and Spain, and plans to acquire Molotov, the leading live TV streaming platform in France, to further expand its international presence. Fubo also has partnerships with major content providers, such as Disney, ViacomCBS, NBCUniversal, Fox and WarnerMedia, as well as device manufacturers, such as Roku, Apple, Amazon and Samsung, to broaden its distribution and reach. 

Fubo is a fast-growing, innovative and disruptive player in the streaming industry that is redefining the future of TV. Fubo has a clear vision and mission to create a more interactive and immersive live TV experience for its customers, especially sports fans. Fubo has a solid financial performance and outlook, as well as a competitive edge and growth potential in the market. These are some of the reasons why someone would want to invest in Fubo.

Reasons Not To Invest In Fubo

While Fubo has some positive aspects and growth potential, it also faces some significant risks and challenges that could hurt its stock performance. Here are some of the reasons to avoid this company:

- Fubo is losing money and burning cash. Fubo reported a net loss of $561.5 million in 2022, up 46.7% from 2021. Fubo also had a negative free cash flow of $378.9 million in 2022, up 36.4% from 2021. Fubo's operating expenses are much higher than its revenue, and its margins are negative. Fubo may need to raise more capital or cut costs to sustain its operations and growth. 

- Fubo faces intense competition and rising content costs. Fubo competes with other streaming services, such as YouTube TV, Hulu + Live TV, Sling TV, AT&T TV and Philo, as well as traditional cable and satellite providers. Fubo's main differentiator is its sports content, but it also has to pay high fees to acquire the rights to broadcast live sports events from various leagues and networks. Fubo's content costs increased by 67% year-over-year to $833.8 million in 2022, accounting for 82% of its revenue. Fubo may have difficulty maintaining or increasing its market share and pricing power in a crowded and competitive industry. 

- Fubo's valuation is not cheap and reflects high expectations. Despite its recent stock price crash, Fubo still trades at a high price-to-sales ratio of 4.4, which is above the industry average of 3.6. Fubo's valuation implies that the market expects the company to grow its revenue and earnings significantly in the future, which may not be realistic given its current financial situation and competitive landscape. Fubo may face further downside pressure if it fails to meet the market's expectations or encounters any negative surprises. 

Fubo is a risky stock with massive losses, high costs, fierce competition and lofty valuation. Fubo's growth prospects are uncertain and depend on its ability to execute its strategy, innovate its product, expand its customer base and monetize its platform. Fubo may not be able to achieve profitability or positive cash flow anytime soon, which could limit its financial flexibility and growth potential. These are some of the reasons to avoid this company.

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About the Author

Dylan is an investing and passive income watch dog. He created Level Up Your Wealth to prevent people from wasting money on scam programs and to recommend high quality offers.

Dylan Rieger

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