AUS
NZ
UK
CA
USA
IND
The communications sector covers a broad range of enterprises, including internet service providers, major content and movie producers, over-the-top (OTT) platforms, online game creators, etc. Amid the COVID-19 outbreak over the past year, the sector has witnessed an extraordinary surge in demand.
However, while live streaming and video gaming companies recorded remarkable gains amid pandemic-triggered lockdowns, advertising and sponsorships have taken a back seat, which partially offset their revenues.
Speaking of the communication sector, companies Roblox Corporation (RBLX:US, NYSE:RBLX) and FuboTV Inc (FUBO:US, NYSE:FU) recently published the results of their 2021 first-quarter. Let’s delve in to see how these two communication stocks have performed.
Roblox Corporation (RBLX:US, NYSE:RBLX)
Roblox is an online gaming platform where users of all ages can interact with each other and have 3D experiences.
The gaming software firm debuted on the New York Stock Exchange on March 10 this year and surged as much as 54.4 per cent on its first day of trading. The stock soared to US$ 69 against its reference price of US$ 45 apiece during its market debut.
The company benefited from the rising demand for online gaming amid lockdowns in 2020, and it capitalized on its success by going public through a direct listing. Its shares gained more than 19 per cent since its public debut in March.
The gaming stock climbed over 21 per cent on Tuesday, May 11, with a massive one-day volume of 31 million, after it posted its first quarter 2021 results on Monday.
In the first quarter of 2021, Roblox’s top line was up 140 per cent year-over-year (YoY) to US$ 387 million. Its software bookings surged by 161 per cent YoY to US$ 652.3 million during the quarter.
Source: Pixabay
FuboTV Inc (FUBO:US, NYSE:FU)
The live TV streaming firm offers its content across smart TVs, smartphones, computers and tablets. Its stock shot up 57.76 per cent in the last nine months.
FuboTV stock also catapulted by 117.6 per cent from its 52-week low of US$ 8.12 (July 6, 2020) to US$ 17.67 apiece.
However, the entertainment stock has gone through a massive correction and dipped by 71.6 per cent from its 52-week high of US$ 62.29 (December 22, 2020).
FuboTV shares rebounded by eight per cent on Tuesday after it increased its top line and subscribers forecast for 2021. It added 43,000 new subscribers in the first quarter of 2021, up 105 per cent YoY. Meanwhile, the company reported a notable advertising revenue surge of 206 per cent YoY to 12.6 million in Q1 2021.
The above constitutes a preliminary view and any interest in stocks should be evaluated further from investment point of view.
