What Happened?
Shares of live sports and TV streaming service fuboTV (NYSE:FUBO) fell 22.2% in the morning session after the company reported weak fourth-quarter results, with next-quarter revenue guidance missing expectations and international subscriber numbers falling short of Wall Street's estimates. While revenue grew 8% year-on-year, this marked a slowdown from previous quarters due to weaker subscriber additions.
Looking ahead, the first-quarter forecast isn't exactly reassuring, with a projected 4% drop in North American subscribers and flat revenue growth. This raises concerns about user retention and future expansion. The growth decline in the international market is expected to be much worse. Overall, the quarter was mixed: profitability improved, but slower subscriber growth and cautious guidance created uncertainty around future revenue expansion.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy fuboTV? Access our full analysis report here, it’s free.
What The Market Is Telling Us
fuboTV’s shares are extremely volatile and have had 64 moves greater than 5% over the last year. But moves this big are rare even for fuboTV and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 6 months ago when the stock gained 35.5% on the news that the company won a preliminary injunction against the launch of the Venu Sports joint venture between The Walt Disney Company, FOX Corp., and Warner Bros. Discovery. Fubo argued that the JV would have monopolized 60%-80% of live broadcast sports content, reducing competition and increasing prices for consumers. David Gandler, co-founder and CEO, Fubo, commented: "Today's ruling is a victory not only for Fubo but also for consumers. This decision will help ensure that consumers have access to a more competitive marketplace with multiple sports streaming options.".
fuboTV is up 114% since the beginning of the year, but at $3.02 per share, it is still trading 44.8% below its 52-week high of $5.46 from January 2025. Investors who bought $1,000 worth of fuboTV’s shares 5 years ago would now be looking at an investment worth $360.65.
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