fuboTV Inc (NYSE:FUBO) debuted on the New York Stock Exchange on Oct. 8, 2020. The stock has been a winner, doubling in value since then. But over the past few months, its fortunes have reversed as the stock has been sliding – fast. Down 57% since Feb. 1, its shares are trading around $22. The last time they were at that price was November 2020.
What has got investors so down on the stock?
Nothing dire took place on Feb. 1 that would have signaled to investors that it was time to sell. High-growth stocks have generally underperformed in recent weeks; even a top stock like Amazon (NASDAQ:AMZN) has seen its shares plunge 9% over the past few months.
Tesla (NASDAQ:TSLA) has fallen an incredible 26%.Although an all-out crash is not happening, investors are starting to show some apprehension with highly priced stocks.
fuboTV is coming off a strong year in 2020 where it finished the year with 547,880 paid subscribers. In the fourth quarter, its sales of $105.1 million marked the first time it breached the $100 million plateau. But despite coming in higher than its guidance and generating around 80% growth, that hasn't been enough to get investors to pay more of a premium for the streaming stock.
The company remains unprofitable and in an increasingly crowded industry with many competitors, investors may not be ready to take a chance on fuboTV. However, given its impressive growth numbers, the stock may be a good buy because if there's one thing retail investors love, it's a good growth story, which fuboTV has. If you're willing to take on some risk, now could be a great time to buy this stock on the dip.
