FuboTV Inc. (FUBO) experienced a decline today, closing at $5.35, down 2.01% from the previous close of $5.46. The stock opened at $4.63, hit a high of $6.10, and a low of $4.55, with an extraordinary trading volume of 171,613,657 shares, significantly above the average. The decline is primarily attributed to legal scrutiny surrounding its recent merger with Disney's Hulu + Live TV. The investigation, led by a law firm, is examining whether FuboTV shareholders are receiving equitable treatment, as Disney is set to own a 70% stake in the combined entity. This has raised investor concerns about the fairness of the deal, contributing to the stock's downward pressure.
On social media, discussions reflect mixed sentiments. Some users on r/fuboinvestors express optimism about Fubo's long-term potential, with comments like "Fubo is far from the top. Even if there is a correction down to the 4-5's, this will go over 10 in the coming weeks for sure." However, others are cautious, noting the current volatility as a "shake out the weak hands." The legal scrutiny and mixed investor sentiment have overshadowed the merger's potential benefits, such as expanded content offerings and improved economies of scale.
Additionally, the stock's performance was impacted by a flash crash, as noted in a Reddit post, "Yo, did anyone else catch that insane FUBO drop at 4.32ish today? Like, it tanked hard for a few seconds I was down a lot in the blink of an eye and then it just bounced right back up." This sudden drop and recovery suggest possible market manipulation or stop-loss triggering by larger players.
Despite the merger's potential to reshape the streaming landscape, the legal challenges and investor uncertainty have weighed heavily on FuboTV's stock.