FuboTV Inc (NYSE:FUBO) shares are down on Wednesday following a disappointing earnings report. The stock’s decline comes as the company announced it would no longer provide guidance, contributing to uncertainty in investor sentiment as broader markets edged lower. Here’s what investors need to know.
FuboTV’s Subscriber Drop: A Red Flag For Growth?
FuboTV reported a revenue increase of 40% year-over-year to $1.549 billion, surpassing analyst expectations. However, the company also posted a fourth-quarter loss of 2 cents per share, missing Wall Street’s estimate of a 1-cent loss.
In addition, FuboTV’s North America revenue reached $1.543 billion, up from $1.106 billion in the prior-year period, but the total number of subscribers fell to 6.2 million from 6.3 million year-over-year. The company also announced plans for a reverse stock split, with an exchange ratio yet to be finalized.
Can FuboTV Break Through Key Resistance Levels?
FuboTV is currently trading 30.3% below its 20-day simple moving average (SMA) and 47.8% below its 100-day SMA, reflecting significant weakness in its price action. Over the past 12 months, shares have decreased by 63.10% and are positioned closer to their 52-week lows than highs.
The RSI is at 20.44, indicating that the stock is in oversold territory, while the MACD is below its signal line, suggesting bearish pressure on the stock. The combination of oversold RSI and bearish MACD indicates mixed momentum.
- Key Resistance: $2.50
- Key Support: $1.50
FuboTV’s Business Model
FuboTV is a sports-first, live TV streaming company offering subscribers access to tens of thousands of live sporting events annually, along with news and entertainment content. Its platform allows customers to stream content on various devices, making it a competitive player in the streaming market.
Tuesday’s earnings report and the announcement of a reverse stock split highlight the challenges FuboTV faces in maintaining subscriber growth and profitability. As the company navigates these hurdles, its market position remains crucial for investors looking for opportunities in the streaming sector.
FUBO Shares Drop Wednesday
FUBO Price Action: FuboTV shares were down 4.52% at $1.69 at the time of publication on Wednesday, according to Benzinga Pro data.
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