In recent weeks, investors have been rotating out of more speculative names toward value-oriented, and reopening-related stocks. Sports-centric streaming TV service fuboTV (FUBO 3.15%) is one of the volatile names that has taken the brunt of the retrenchment.
That downtrend continued today as competition also has started to heat up in the sports betting approach to streaming TV the company is taking. At the market close, shares were down 9% on the day.
In addition to the overall market's sector rotation, news that fantasy sports and sports betting app DraftKings (DKNG 8.18%) has partnered with Dish Network (DISH 11.60%) means competition is heating up for fuboTV.
Though it still has yet to earn a profit, investors believe fuboTV has potential as it works to integrate its sports-oriented streaming service into a sports betting experience. In its letter to shareholders discussing the fourth quarter and full year 2020, the company said, "We believe our expected expansion into wagering and interactivity will further differentiate us from our peers."
So when it was announced that a newly announced partnership between DraftKings and Dish Network will put DraftKings' sports betting and fantasy sports app on Dish Network's platform, that differentiation came into question. One of Dish Network's services is streaming platform Sling TV, bringing immediate competition to fuboTV's plans.
The company is still in growth mode, with paid subscribers jumping 73% in 2020, reaching almost 550,000. Investors should remember this is a more speculative name, and it's possible that the potential won't come to fruition either due to performance or competition. For now, the latter is what needs watching.