When ViacomCBS (NASDAQ:VIAC) shares topped $100, the price turned out too good to be true. Within days last week, VIAC stock fell 50% for the week. The company took advantage of the rise by pricing 20 million shares of its Class B stock at $85. It also priced 10 million shares of its 5.75 Series A preferred stock at $100 a share.
ViacomCBS raised around ~$3 billion from the stock sale. The firm will use the proceeds for investments in streaming. Investors who got too greedy by paying more than $40-$50 may sit on paper losses for a while. Those who bought the stock at around $12-$15 last year need not sell. Still, the further it drops, the smaller the gains left.
FuboTV (NYSE:FUBO) fell after an investor registered a large block trade on March 26. The short interest of 22% is not helping its momentum. The short-squeeze peaked at the end of last year, sending the stock to $62.29. Shorts may have re-established their position when the stock hovered in the $40-$45 zone earlier this year. When the NASDAQ weakened, it took away the buying momentum.
The block trade on March 26 does not fully explain the drop in FUBO stock. It accounted for around 5% of the daily volume. Fundamentals for FuboTV are not strong enough to justify the stock’s current valuation. The company posted decent Q4 results but warned of a softer Q1 period.
Avoid FUBO and VIAC stock.
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