fuboTV Leads Q3 Media Earnings, But Is the Stock Undervalued?

As the Q3 earnings season comes to a close, media companies have delivered a largely positive set of results despite ongoing structural challenges in the industry. Traditional media firms continue to face pressure from changing consumer habits, cord-cutting, and competition from digital platforms. At the same time, companies that have leaned into streaming, live sports, and digital subscriptions are showing signs of resilience.

Overall, the seven major media stocks tracked this quarter reported strong Q3 earnings, with revenues beating Wall Street expectations by an average of 2.1%. Even more encouraging for investors, share prices across the group have risen 6.2% on average since earnings were released. Among these companies, fuboTV (NYSE: FUBO) stood out as the top performer based on earnings quality, while Warner Bros. Discovery (NASDAQ: WBD) lagged behind expectations.

Best Q3 Performer: fuboTV (NYSE: FUBO)

Originally launched as a soccer-focused streaming platform, fuboTV has evolved into a broader live TV streaming service offering sports, news, and entertainment. Live sports remain the company’s biggest differentiator, helping it attract a loyal audience that values real-time content.

In Q3, fuboTV reported revenue of $377.2 million, representing a 2.3% year-over-year decline. While a revenue drop may seem concerning at first glance, the result beat analyst expectations by 4.9%, which is what truly matters during earnings season. More importantly, the company exceeded expectations on earnings per share (EPS) and EBITDA, signaling improving cost control and progress toward profitability.

Despite the strong earnings performance, fuboTV’s stock has struggled. Shares are down nearly 29% since the earnings release and currently trade around $2.50–$2.70, depending on market movement. This disconnect between operational performance and share price has reignited debate around whether the stock is undervalued or whether the market is pricing in long-term risks.

fuboTV Valuation: Undervalued or Value Trap?

At current levels, fuboTV is trading well below its past highs. Over the last 30 days, the stock has declined nearly 12%, and over the past 90 days, it is down more than 34%. However, zooming out, the three-year total shareholder return is still positive at over 32%, suggesting that earlier growth optimism has faded rather than disappeared entirely.

One popular valuation narrative suggests fuboTV could be around 44% undervalued, with a perceived fair value near $4.50 compared to a current price around $2.50–$2.60. Supporting this view is the company’s low P/E ratio, which sits below the industry average of 22.33 for Interactive Media & Services.

A lower P/E can signal undervaluation, but it can also reflect uncertainty. In fuboTV’s case, investors appear cautious due to ongoing losses, competitive pressure from larger streaming platforms, and questions around long-term profitability. Still, improving margins and earnings beats suggest the company is moving in the right direction.

Our take: fuboTV looks attractively priced for risk-tolerant investors who believe in the long-term value of live sports streaming. However, it remains a speculative play rather than a safe investment.

Strong Q3 Showing: Warner Music Group (NASDAQ: WMG)

Warner Music Group delivered one of the most impressive quarters in the media sector. The company reported $1.87 billion in revenue, up 14.6% year over year, and exceeded analyst expectations by a wide 10.8% margin.

Warner Music posted the fastest revenue growth and the largest earnings beat among its peers. Despite the excellent results, the stock reaction was muted, rising just 1.2% since earnings. Shares currently trade around $30.88.

This suggests the market already had high expectations priced in. Still, Warner Music stands out as one of the most fundamentally solid media names, benefiting from streaming growth, global music demand, and a strong artist portfolio.

Weakest Q3 Performer: Warner Bros. Discovery (NASDAQ: WBD)

On the other end of the spectrum, Warner Bros. Discovery posted the weakest results relative to expectations. Q3 revenue came in at $9.05 billion, down 6% year over year and 1.9% below analyst estimates.

While the company did beat expectations on adjusted operating income, weaker content revenue weighed on overall performance. Surprisingly, the stock surged 24.5% after earnings, now trading near $28.52.

This rally suggests investors are focusing more on cost cutting, debt reduction, and future restructuring benefits than on short-term revenue weakness.

Disney and News Corp: Mixed but Stable

Disney (NYSE: DIS) reported flat revenue of $22.46 billion, missing expectations slightly. The stock is down 2.7% since earnings, reflecting lingering concerns around streaming profitability and media segment growth.

News Corp (NASDAQ: NWSA) delivered a solid quarter, with revenue rising 2.3% year over year and beating estimates. Shares are up 6.5%, signaling steady investor confidence.

Final Thoughts

Q3 earnings showed that the media industry is far from collapsing. While challenges remain, companies with strong digital strategies and disciplined cost management are still delivering results. fuboTV stood out operationally, even as its stock price tells a more cautious story.

For investors, fuboTV represents a high-risk, high-reward opportunity, while Warner Music Group and News Corp offer more stability. As always, valuation should be weighed alongside growth potential, balance sheet strength, and long-term strategy.

If you’re looking for media stocks with upside, Q3 earnings provided plenty to think about, but patience and selectivity remain key.

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