With stocks bouncing back from their May lows, you may be tempted to get back into riskier plays. For instance, FuboTV (NYSE:FUBO). While FUBO stock has held steady rather than begun to bounce back, you may be under the impression that it’s bottomed-out.

In turn, you may assume that, whether due to more company-specific news, or improving market conditions, this current long-shot sports streaming/betting play can make a comeback. Unfortunately, there continues to be little that suggests a comeback is in the cards.

At least, assuming it keeps on struggling with high operating losses. Losses could remain high, as revenue growth slows down further. If this ends up happening, high losses, which also mean more burning of its cash position, could result in another big move lower for the stock. Weighing this against murky upside potential, I continue to hold a bearish view on it.

FUBO Stock: Same Story, Same Problems

Since writing about it late last month, there’s been little in the way of news with FuboTV. That’s not to say there were zero headlines. For instance, on June 6, it was announced that the stock would be added to the Russell Microcap Index.

But in terms of changes to the fundamentals with FUBO stock? Put simply, it’s the same story, as the company deals with the same issues discussed in my last article on it. Mainly, the profitability issue. As seen in its most recent quarterly results (released May 5), it’s still struggling to turn soaring revenue into a path out of the red.

Instead of seeing its losses narrow, they’ve widened. For instance, for last quarter (ending March 31, 2022), it reported a net loss of $140.8 million. That was more than double the loss reported in the prior year’s quarter ($70.2 million).

Analysts expect high losses in 2022 and 2023, and that’s assuming it hits growth in line with consensus. With management walking back revenue guidance, there’s good reason to believe results will disappoint in the quarters ahead. This may mean higher losses, greater cash burn, and justification to send this stock even lower.

Downside Still High, Upside Questionable

Over the past year, FUBO stock is down 90%. Year-to-date alone, it’s down 81%. Dropping so rapidly, it may seem oversold. In turn, limited downside from here. However, this perception may not line up with reality.

Just because a stock is down by a large amount, doesn’t mean it can’t drop again by a similar amount. That’s not to say that I think another 80%-90% drop is likely for FuboTV, but if high losses persist, it may be difficult for the stock to hold steady at around $3 per share.

Going through more of its cash may result in it needing to raise more money, on dilutive terms. This will put more pressure on shares. Maybe not to a degree that results in a high double-digit decline, yet it could result in a potential plunge that outweighs potential upside.

Speaking of upside, until it shows signs its troubles are easing, there’s likely little to speak of here. Not only that, the market’s currently negative view of sports betting plays doesn’t do it many favors. Especially as it is viewed as an “also-ran” sports betting play.

The Verdict on FUBO Stock

The opinion that Fubo is a “wannabe” sportsbook operator rather than a promising contender may be unfair. The company isn’t looking to become one of the top operators by market share.

Rather, it’s looking to enter markets (U.S. sportsbook licensing is on the state level) where it can profitably operate. It’s also using sports wagering more as a vehicle to attract streaming subscribers. Having said that, even this alternative game plan may fail to have the intended positive impact. Rolling it out into more markets may end up failing to attract that many more streaming subscribers.

Its sportsbook platform could also fail to scale to a level that enables it to become profitable. With FUBO stock, which earns an “F” rating in my Portfolio Grader, the risk/return proposition does not look favorable. As its merits as a “moonshot” play are questionable, despite the low share price, avoid.

On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.