Shares of fuboTV (NYSE:FUBO) have been on a bit of a rollercoaster ride, and today continues the downhill drop. As of 10:15 a.m. EST Thursday, the stock was down another 9%, bringing its two-day cumulative drop to 23%.
But investors who have owned it for more than a week shouldn't be complaining, as they are still up over 80% on the newly public company.
The sports-focused streaming service went public through an initial public offering (IPO) on Oct. 8, and shares had been on a tear until yesterday. There are several explanations for the reversal.
FuboTV was one of the lesser-known streaming services until the stock went public, and management began increasing visibility to investors. The company had only slightly more than 300,000 subscribers in 2019.
But the company made a splash with investors earlier this month when it announced it would acquire online fantasy sports tool developer Balto Sports as a "first step into [the] sports wagering market."
The online sports betting sector is hot right now, and that helps explain the huge move in fuboTV's share price. But sometimes a sharp rise like that leads investors to decide to cash in. An analyst downgrade yesterday based on valuation concerns started the share price reversal.
But streaming TV and online sports betting are both gaining consumer engagement. The company said it was up to 455,000 paid subscribers as of the quarter ended Sept. 30, representing a 58% gain over the prior year period.