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FuboTV shares continue to dip as bears feast on Upstart streaming – Update – Deadline

UPDATED with today’s inventory movement. FuboTV shares slipped 16% more today amid high trading volume as pessimistic investor sentiment towards the streaming startup reigned on the last day of 2020.

At $ 28.01, the stock is back to where it traded two weeks ago, before a massive boom took it above $ 62, on volume nearly nine times the normal levels. There did not appear to be any news weighing on stocks, and the pullback came as major stock indexes ended 2020 in positive territory for the day.

Despite the crisis, FuboTV stock is among the best performing of the year in the media sector, having more than doubled from its IPO price in October.

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FuboTV’s yo-yo action on the New York Stock Exchange continued on Wednesday as the streaming service’s shares fell 14% to $ 33.31 amid a boisterous debate over the potential of the action.

FuboTV stock stumbles on analyst demotion again, wraps up roller coaster week

It was the fourth day of the last five that Fubo lost ground in a major reversal from last week’s explosion beyond $ 62 a share. The bulls-and-bears debate over the streaming package provider intensified at the end of the year.

One of the obvious reasons for today’s sale was the expiration of a lock-up agreement during the company’s initial public offering in October. To date (December 30), approximately 88 million shares – more than three times the previous “free float” – have become eligible for sale. This means that a number of new investors have been able to take profits if they want to lock them in, with even the price falling by more than double the IPO level.

The Bulls see Fubo as a game-changing tech company that will grow to greater glory like Roku, Netflix, and other great pilots. Rather than simply replacing conventional pay TV, they say, the company can use its technology to integrate sports betting or other personalized content, making it an attractive option for sports fans shying away from the traditional package.

Bears see notable gaps in programming (it recently parted ways with WarnerMedia, for example, dropping networks like TNT and TBS) as well as the growing challenge of acquiring customers. Internet offerings like Sling TV and YouTube TV have been around for years, as has Fubo, which was founded in 2015. They promise much less friction than the usual cable TV experience with box and truck and yet they do. a fraction of the total universe of TV operators.

Regardless, Fubo is still in its infancy, who said he had 455,000 subscribers at the end of Q3, just under 10% of the total for Hulu + Live TV, which is newer. in the area.

Today’s closing stock price is well below last week’s high, which put Fubo worth $ 6.5 billion on paper, but it’s well above the $ 13 it was worth. ‘he was in command on Oct. 7, when he went from the backcountry over-the-counter to a listing on the NYSE. Among the bulls on Fubo is Needham analyst Laura Martin, known for her skepticism on Netflix. It reaffirmed its “buy” rating on Fubo shares last week and issued a price target of $ 60.

On Monday, the hedge fund Islet Management unveiled a 7% stake in Fubo. Partly as a result of distribution deals, media companies like Disney, Discovery, AMC Networks and others have also liquidated FuboTV share ownership. Edgar Bronfman Jr., a media veteran and investor known for his CEO roles at Warner Music and Vivendi Universal, became the company’s executive chairman earlier this year.

Trade volume was nearly eight times normal levels today, however, with the bears winning. BMO Capital Markets issued a downgrade on Fubo last week, one of the few negative valuations to surface. Another skeptic is Rich Greenfield, an analyst and expert who has a large social media presence and a blog hosted by his company, Lightshed Partners. He dismissed Fubo last week as “the most attractive shorts,” hitting a price target of $ 8 on his shares. Kerrisdale Capital followed up with a brief call of its own today.

As boosters and naysayers argued on Twitter, venture capitalist and former Amazon executive Matthew Ball observed him in a tweet: “I’ve personally never seen such ridiculousness and such confusion before. “

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