Shares of FuboTV popped today, although there was no major news driving up shares of the video streamer. Instead, the entertainment stock seemed to be responding to broader gains in growth stocks, which came after it reported a strong earnings report earlier this week.
FuboTV stock finished the day up 12.4%, while the Nasdaq gained 2.3%, and the ARK Innovation ETF, often seen as a proxy for high-priced growth stocks, finished up 4.9%.
FuboTV stock has been highly volatile since its IPO last October, with shares briefly spiking to more than $60 late last year. The stock has since fallen to nearly $20, tracking a broader trend in growth stocks, which have mostly fallen over the last three months over concerns about rising interest rates.
Shares jumped earlier this week after the company posted strong results in its first-quarter earnings report, with revenue rising 135% to $119.7 million. It also saw its subscriber base more than double from the year-ago quarter, growing 105% to 590,430, which included 43,000 subscriber additions in the first quarter. However, the company is still deeply unprofitable with an adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) loss of $46.5 million.
As a live sports-focused streaming company, FuboTV hopes to disrupt video entertainment in part by allowing betting on sports within its interface. The company is the only pure-play live-streaming stock on the market, though it does face larger competitors like YouTube TV and Hulu Live.