What happened

Shares of fuboTV (NYSE:FUBO) continued a remarkable slide that has brought the stock down more than 60% since the Dec. 22 high. Today, shares were down another 17% to slightly over $23 per share as of 2 p.m. EST.

The drop came following an equally remarkable rise of 400% after the company launched its initial public offering (IPO) in October. 

So what

After fubo went public, investors were excited about a live TV streaming service focused on sports but also offering many other popular channels. But as fast as shares soared to a market cap valuation over $4 billion, they started the slide that continued today. 

fubo TV screen showing Sportcenter screen

Image source: fuboTV.

Now what

Fubo reversed its upward trajectory after LightShed Partners, led by respected media analyst Richard Greenfield, questioned management's growth assumptions. Sellers piled on when Kerrisdale Capital put out a short report that criticized the acquisition of online fantasy sports tool developer Balto Sports. Kerrisdale said fubo's claim that it was a "first step into [the] sports wagering market" was "pure stock promotion." 

Fubo is not yet profitable, but it has reported strong subscriber growth of 58% year-over-year for the quarter ended Sept. 30. Kerrisdale's prediction is that this growth was a one-time boost from the timing of sporting events. 

Investors who bought higher are no doubt nervous about the slide. But you can't always time a stock purchase, and the business fundamentals will tell the story. The original excitement in the stock was based on potential. Now that some reports are questioning that potential, many investors are selling without thought.

Long-term investors should have a plan. If a purchase is based on just potential, it presumably was sized appropriately. Being wrong won't cost much, and being right will allow for additional investments. Until we hear business results from the company, we won't know for sure if that potential was more than just speculation.