Why fuboTV Stock Lost 20% Last Month
Shares of fuboTV (NYSE: FUBO) fell 20.4% in February 2022, according to data from S&P Global Market Intelligence. The chart continued to trend downward after a 31% plunge in January. The main force that pushed down this stock was a broad-based investor retreat from risky growth stocks, punctuated by a disappointing earnings report from media-streaming platform provider Roku (NASDAQ: ROKU).
Roku posted strong earnings but soft top-line sales in the fourth quarter, driving that company's stock 22% lower the next day. fuboTV followed suit with a 13.5% haircut as investors jumped to the conclusion that streaming video must be falling out of favor in general. As a provider of live TV services over a digital streaming platform, fuboTV depends on hardware and software platforms on which its media streams can be presented, and Roku is a leading supplier of these crucial devices.
However, when fuboTV delivered its own fiscal update for the same reporting period, the company largely proved the bears wrong. Revenues rose 120% year over year to $231 million, and the bottom line showed an adjusted net loss of $0.57 per diluted share. The average analyst had expected a loss of $0.67 per share on sales near $213 million. fuboTV shares rose 10% the next day, softening the blow from Roku's fallout.
Source Fool.com
