FuboTV Shares Plunge 22% on Reverse Stock Split Announcement
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5d ago
0mins
Should l Buy FUBO?
Source: Fool
- Significant Revenue Growth: FuboTV reported a 40% year-over-year revenue increase to $1.5 billion in its fiscal 2026 Q1, despite a net loss of $19.1 million, which is a notable improvement from a $38.6 million loss in the prior year, indicating potential for revenue expansion.
- Partnership with Disney: The integration of Disney's Hulu + Live TV service into Fubo's operations is expected to create operational synergies through content cost savings and advertising optimization, enhancing profitability and sustainable growth while providing consumers with greater flexibility in streaming options.
- Reverse Stock Split Plan: Fubo intends to conduct a reverse stock split of either 1-for-8 or 1-for-12 later this quarter; while reverse splits do not alter the company's value, they often signal underlying struggles, leading to negative investor sentiment regarding reduced share ownership.
- Negative Market Reaction: Following the announcement of the reverse stock split, FuboTV's shares plummeted 22.03% to $1.77, resulting in a market cap of $801 million, reflecting investor concerns about the company's future prospects and potentially foreshadowing further challenges ahead.
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Analyst Views on FUBO
Wall Street analysts forecast FUBO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for FUBO is 4.63 USD with a low forecast of 4.25 USD and a high forecast of 5.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Analyst Rating
2 Buy
3 Hold
0 Sell
Moderate Buy
Current: 1.620
Low
4.25
Averages
4.63
High
5.00
Current: 1.620
Low
4.25
Averages
4.63
High
5.00
About FUBO
FuboTV Inc. is a live television (TV) streaming company. The Company offers subscribers access to tens of thousands of live sporting events annually, alongside news and entertainment content, both live and on demand. It offers consumers a broad set of sports, including more than 55,000 live sporting events, and entertainment-focused programming offerings from Fubo and Hulu + Live TV. It owns Hulu + Live TV (entertainment), Fubo (sports) and Molotov (entertainment and sports), which stream in markets around the globe. FuboTV Inc. is an affiliate of The Walt Disney Company. The Company's platform is designed to enable customers to access content through streaming devices and on Smart TVs, mobile phones, tablets, and computers. Its platform provides with a broad suite of features and personalization capabilities, such as multi-channel viewing capabilities, favorites lists and a recommendation engine, as well as 4K streaming and Cloud DVR offerings.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Revenue Growth but Loss: FuboTV reported a 40% year-over-year revenue increase to $1.549 billion, exceeding analyst expectations, yet posted a fourth-quarter loss of 2 cents per share, missing Wall Street's estimate of a 1-cent loss, indicating ongoing profitability challenges.
- Subscriber Decline Warning: While North American revenue rose from $1.106 billion to $1.543 billion, the total subscriber count fell from 6.3 million to 6.2 million, reflecting challenges in user growth that could impact future market competitiveness.
- Weak Stock Performance: FuboTV shares are currently trading 30.3% below their 20-day simple moving average and 47.8% below their 100-day moving average, indicating significant market weakness, with a 63.10% decline over the past 12 months, positioning the stock closer to its 52-week lows.
- Reverse Stock Split Plan: The company announced plans for a reverse stock split, with the exchange ratio yet to be finalized, which may aim to boost the stock price to attract investors, but also highlights difficulties in maintaining shareholder confidence.
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