It’s another down day for the stock market, with most major indices losing around 1% as of early afternoon trading. However, one of today’s biggest movers to the downside is streaming company FuboTV (NYSE:FUBO). As of 1 p.m. Eastern, FUBO stock is down more than 10% as investors price in poor tech earnings and continued Fedspeak.
Interestingly, there’s little news to speak of when it comes to FuboTV today. Accordingly, this outsized move appears to reflect seriously negative sentiment around the streaming TV provider. On a year-to-date basis, FUBO stock has actually outperformed until today’s decline. Thus, it appears FuboTV, like other more speculative tech names, remains a very high-beta way to play market movements.
When the going is good and the bull is running in the markets, that can be a great catalyst for FUBO stock. However, on reversion days like today, this is clearly a name that can give up significant gains.
Let’s dive into what to make of this move.
What’s Going On with FUBO Stock?
As mentioned, FuboTV has had a compelling run to start the year. This stock opened 2023 trading at roughly $1.70 per share. Shares of FUBO stock then soared to a high of $2.40 yesterday, before settling down around the $1.90 level at the time of writing.
Thus, this is a stock that’s declined more than 20% from yesterday’s peak. That’s a rather rapid short-term move, particularly for a company with little news to speak of.
Perhaps investors believe FUBO stock has run too far, too fast. Some profit taking seems reasonable given the allure of this stock as a trading vehicle.
Additionally, it appears longer-term investors have moved on from the FuboTV story. The company may not see profitability for some time, and in this market, more defensive investors have plenty of other beaten-down options to choose from. Thus, the sustainability of this year’s risk-on rally is certainly being put to the test.
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On the date of publication, Chris MacDonald did not have (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.
