What Happened?
Shares of live sports and TV streaming service fuboTV (NYSE: FUBO)
fell 4.9% in the afternoon session after news of a $15 per month price increase for its service was coupled with a broad sell-off in streaming stocks as industry leader Netflix reported a weak outlook.
The negative sentiment for the sector was largely driven by Netflix, whose shares sank more than 10% after it forecast slowing revenue gains. This fueled fears that the streaming industry's growth may have peaked. For Fubo, customer anger over its price hike added to the pressure.
The stock was also still dealing with skepticism following its second-quarter earnings miss in the previous month, where it reported a decline in North American paid subscribers to 5.7 million from 5.9 million year-over-year.
The shares closed the day at $9.72, down 5.1% from the previous close.
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What Is The Market Telling Us
fuboTV’s shares are extremely volatile and have had 45 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 3 months ago when the stock gained 24.7% on the news that the company released an optimistic financial outlook, setting new long-term targets for profitability and cash flow. In a letter to shareholders, FuboTV announced it expected to deliver between $80 million and $100 million in Pro Forma Adjusted EBITDA in Fiscal 2026. Looking further ahead, the company targeted at least $300 million in Adjusted EBITDA in Fiscal 2028. Management also stated they believed FuboTV would be Free Cash Flow positive starting in Fiscal 2027. The company affirmed its forecast to end its fiscal year with at least $200 million in cash and cash equivalents. Chief executive David Gandler told shareholders the business had reached the “strongest financial position in our history.”.
fuboTV is down 68.5% since the beginning of the year, and at $9.79 per share, it is trading 82.1% below its 52-week high of $54.72 from September 2025. Investors who bought $1,000 worth of fuboTV’s shares 5 years ago would now be looking at only $31.41.
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