The live streaming platform FuboTV (NYSE:FUBO) is suffering losses today seemingly as a reaction to Netflix’s (NASDAQ:NFLX) recent earnings report. Indeed, FUBO stock is down more than 7% this morning as investors digest a worse-than-expected earnings call from Netflix.
This morning, Netflix reported its financial results for its fiscal Q1 2022. Investors have been holding their breath as analysts forecasted a second potentially detrimental quarter for one of the original streaming services. Unfortunately, Netflix managed to fall behind even bearish forecasts for its earnings.
Netflix reported losing 200,000 customers in the first quarter, marking the first time the company reported a net loss since 2011. For context, despite concerns of waning demand, Wall Street still expected Netflix to experience a net gain of around 2.5 million customers. Reasonably so, as Netflix has consistently enjoyed user gains of 25 million subscribers per year. Additionally, the company projects it will drop an additional 2 million customers in Q2 of this year.
As you might imagine, investors haven’t been kind to Netflix stock today. In fact, streaming services are down across the board today as investors express fear over a potential streaming service slump.
So, what does this have to do with Fubo?
FUBO Stock Joins Streaming Stock Slump
Netflix’s massive earnings loss has had iterative effects on the market. Warner Bros. Discovery (NASDAQ:WBD), Roku (NASDAQ:ROKU) and Disney (NYSE:DIS) are all well in the red today. Netflix, was, perhaps as expected, the worse casualty of its earnings call. NFLX stock is down nearly 40% this morning as investors consider the implications of a reversal of streaming service popularity.
Fubo is best known for its live TV offerings, including sports, news and entertainment. There is little direct news related to Fubo this morning, so the company’s drop is likely attributable to Netflix’s recent report. Ahead of Fubo’s May 5 earnings call it seems investors are preparing for near universal subscriber drops.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.