FuboTV (NYSE:FUBO) stock is taking a nosedive on Wednesday after ESPN, Fox (NASDAQ:FOXA) and Warner Bros. Discovery (NASDAQ:WBD) announced a new major sports streaming service. Indeed, FUBO is down more than 20% so far today, pushing shares below the $2 psychological barrier.
What do you need to know about FuboTV’s crash landing today?
Well, it seems Fubo is taking the bearish brunt of competitors’ bullish announcement. Indeed, three of its biggest rivals announced that they will collaborate on a livestreaming service with content from every major sports league.
Reasonably so, FuboTV is largely known for its sport-focused livestreaming. Indeed, a subscription to the platform grants access to major sports leagues including the NFL, NBA and MLB as well as more obscure offerings from the likes of NASCAR, soccer, golf, tennis and several combat sports.
As you have likely surmised, today’s announcement from ESPN, Fox and Warner Bros. Discovery is throwing a huge wrench in Fubo’s sports streaming aspirations.
“Optically and competitively, this is a negative development for Fubo, which prides itself on being the place to stream live sports,” noted Cantor Fitzgerald analysts Brett Knoblauch and Thomas Shinske per a Seeking Alpha report. “Fubo currently provides access to the majority of the Disney and Fox family of networks (it does not have WBD networks), meaning this new joint venture could effectively replicate much of what Fubo has to offer.”
Each of the companies is anticipated to have a “one-third ownership” of the yet-unnamed service, which is predicted to launch this fall.
FUBO Stock Tumbles to New Low
Today’s news has proven devastating to the already meandering FUBO stock. Indeed, with today’s drop, FuboTV stock is now down about 40% year-to-date (YTD), even as the S&P 500 is up about 5% over the same period.
Fubo lost $83.8 million in its fiscal third quarter despite a more than 40% increase in its revenue. The company previously anticipated positive cash flow in 2025, but these projections may stand to change given the news.
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.
