Shares of sports-focused streaming service fuboTV (NYSE:FUBO) were down 9.6% on Friday as of 3 p.m. EST. Shares have been on a wild ride and just this week advanced more than 45% before today's drop.
The big jump earlier this week came when fuboTV announced plans to acquire interactive gaming company Vigtory and said it expects to launch a sportsbook by the end of 2021.
This was particularly significant because the stock had previously been crushed more than 60% after a short-seller report highlighted the sportsbook plans, saying that they were "pure stock promotion."
The Vigtory acquisition, and subsequent statement that the company has a time frame for launching a sportsbook, seemed to thwart much of the short-seller argument. The acquisition brings experience to fuboTV with Vigtory's co-CEO Scott Butera. Prior to that position, Butera was president of interactive gaming at MGM Resorts International (NYSE:MGM) at the time it launched its online sports-betting app BetMGM. Butera will now become president of fuboTV's gaming division.
Investors who held shares through the volatility that came with negative analyst reports were rewarded earlier this week on that news. Some may have realized that they weren't comfortable with such an aggressive investment and are taking some profits today.
It's important to have the right mentality with any equity investment and be able to hold for the long term through ups and downs. If that doesn't suit an investor's situation or personality, it's best to move on, and some may be doing that to end the week.