Virtual content provider fuboTV (NYSE:FUBO) is known for appealing to sports fans — and for threatening the cable television industry. Hence, traders who support the cord-cutting revolution might consider a position in FUBO stock.

The problem is, some folks don’t take the stock or the company seriously. Once a stock is pigeonholed as a “meme stock,” it’s tough to shake that label off, apparently.

There’s nothing intrinsically wrong with FUBO stock getting a lot of attention from Reddit or Robinhood users. Still, it’s time to look past the “meme” label and consider the company’s value proposition.

And with compelling data to back up a bullish outlook, the skeptics and doubters might want to seriously reconsider their positions.

A Closer Look at FUBO Stock

Don’t get me wrong. I’m willing to acknowledge that FUBO stock got caught up in the “meme stock” phenomenon late last year.

It would be difficult to prove this, but the stock was probably the target of a massive short squeeze in December.

Otherwise, it would be challenging to explain why fuboTV shares catapulted from $5 and change in September, to a 52-week high of $62.29 on Dec. 22.

Prospective investors should realize just how volatile this stock is. Also, they should understand that chasing after a steep rally probably isn’t an ideal strategy.

Here’s what I mean. After topping out in December, FUBO stock slid to $24 in early January 2021. Then, it shot up to $52 in February before commencing a steady, prolonged decline.

FuboTV shares ended May priced at $23.74. This is close to the bottom reached in January, so another run-up could be right around the corner… or here, considering yesterday’s 17.4% surge.

Ad Revenues Soar

Based in New York, fuboTV bills itself as the leading sports-first live TV streaming platform. That’s a tough standard to live up to, but recently released data builds a compelling case.

Here are the highlights of fuboTV’s first quarter of 2021:

• 590,430 subscribers, up 105% year-over-year (YoY)
• 228 content hours streamed, up 113% YoY
• $119.7 million in total revenues, up 135% YoY
• $12.6 million in advertising revenues, up 206% YoY
• $107.1 million in subscription revenues, up 131% YoY
• Average revenue per user (ARPU) per month was $69.09, up 28% YoY
• Advertising ARPU per month was $7.11, up 57% YoY
• Ended the quarter with $465 million of cash, cash equivalents and restricted cash

I see a lot of triple-digit gains there, but the 206% year-over-year increase in ad revenues really caught my attention.

After all, ad revenues are the lifeblood of a company with fuboTV’s business model.

But even if the company relied solely on subscription revenues, it posted triple-digit gains in that area, as well.

Marking Milestones

We can be impressed with the magnitude of the numbers, but it’s important to understand what they really represent.

First of all, fuboTV achieved a number of “firsts.” Specifically, “For the first time in any first quarter, we reported sequential revenue and subscriber growth, despite past seasonality trends.”

Even beyond all of that, though, fuboTV correctly draws a larger conclusion: “This tells us that consumers are increasingly cutting the cord.”

Yet, the company acknowledges that there’s still room to advance against legacy pay TV companies (cable, satellite, etc.).

FuboTV cited data from eMarketer showing that 78 million households are still tied to legacy pay TV.

When we consider fuboTV’s recent growth trajectory, it’s fair to say that those legacy pay TV businesses ought to feel threatened.

The Bottom Line

Some folks might disparagingly call FUBO stock a meme stock. Yet, the numbers prove that fuboTV is a company that’s making impressive progress.

Looking to the present and future, the company expects to generate $120 million to $122 million in revenues, and to add 600,000 to 605,000 subscribers, during 2021’s second quarter.

And with that, don’t be too surprised if fuboTV hits more milestones along the way.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Crush the Street, Market Realist, TalkMarkets, Finom Group, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.