One of FuboTV’s (NYSE:FUBO) biggest advantages was that it was a reliable source of sports streaming. But now, with the combined forces of Warner Bros Discovery (NASDAQ:WBD), Disney (NYSE:DIS), and Fox Sports (NASDAQ:FOXA), that advantage is about shot for good. That sent FuboTV’s shares plunging in Wednesday afternoon’s trading, down over 24% in the session.
Fubo will now have a major new competitor while being on the back foot as the new app will have options that Fubo doesn’t. In addition, Roth MKM analysts Dillon Heslin and Darren Aftahi suggested that Fubo’s “variable cost structure” would do it no favors as it would face decreased growth, churn, and pricing power in the field. The analysts have a Hold rating on the stock with a $2 price target.
Not Giving Up Without a Fight
To Fubo’s credit, it’s not going out quietly. It may be on the cusp of losing one of its biggest competitive advantages in the increasingly packed streaming media market, but it’s not without some options. And it’s putting those options to work. Fubo recently revealed a price hike that sent its subscription rates up to $80 per month for its base package, the “Pro” system.
The regional live sports pack went up an extra dollar a month, and the Starz add-on got similar treatment. But with that, it offered an unlimited digital video recording (DVR) service, which likely proved a welcome addition. Will it be enough to keep Fubo in the fight? Only time will tell.
Is Fubo Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on FUBO stock based on two Buys and two Holds assigned in the past three months, as indicated by the graphic below. After a 23.09% drop in its share price over the past year, the average FUBO price target of $4.08 per share implies 114.17% upside potential.
