Please ensure Javascript is enabled for purposes of website accessibility

Why fuboTV Stock Dropped Almost 10% Today

By Howard Smith - Jan 15, 2021 at 3:29PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

After strong gains earlier this week, the stock is still nearly 20% higher for the week.

What happened

Shares of sports-focused streaming service fuboTV (FUBO 0.63%) 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. 

FUBO Chart

FUBO data by YCharts

So what

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."

Sports fan watching soccer and cheering as player kicks the ball.

Image source: Getty Images.

Now what

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 (MGM 7.45%) 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.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

fuboTV, Inc. Stock Quote
fuboTV, Inc.
$3.21 (0.63%) $0.02
MGM Resorts International Stock Quote
MGM Resorts International
$34.48 (7.45%) $2.39

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/26/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.