What Happened?
Shares of live sports and TV streaming service fuboTV (NYSE:FUBO) fell 14.9% in the morning session after the company reported underwhelming first quarter 2025 results with revenue missing analysts' estimates significantly.
What stood out was the weak revenue growth of just 3.5%, a sharp slowdown from the double-digit gains Fubo posted in previous quarters. This drop-off was driven by subscriber losses in both North America and international markets. Sales were lifted modestly by a slight increase in average revenue per user, but advertising revenue in North America dropped over 17%, weighed down by the loss of certain ad-insertable content. Looking ahead, the company expects revenue in Q2 to decline by 10% in North America and 15% in international markets, largely due to a subscriber dip. Overall, this was a weaker quarter.
The shares closed the day at $2.41, down 17% from previous close.
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What The Market Is Telling Us
fuboTV’s shares are extremely volatile and have had 68 moves greater than 5% over the last year. But moves this big are rare even for fuboTV and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 10 days ago when the stock gained 5.4% as investor sentiment improved on renewed optimism that the US-China trade conflict might be nearing a resolution.
According to reports, Treasury Secretary Scott Bessent reinforced this positive outlook by describing the trade war as "unsustainable," and emphasized that a potential agreement between the two economic powers "was possible." His comments signaled to markets that both sides might be motivated to seek common ground, raising expectations for reduced tariffs and more stability across markets.
fuboTV is up 73.8% since the beginning of the year, but at $2.45 per share, it is still trading 55.1% below its 52-week high of $5.46 from January 2025. Investors who bought $1,000 worth of fuboTV’s shares 5 years ago would now be looking at an investment worth $243.78.
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