What Happened?
Shares of live sports and TV streaming service fuboTV (NYSE: FUBO) fell 6.1% in the afternoon session after competitor Walt Disney announced plans to raise prices for its streaming services.
The price increases, set to take effect on October 21, 2025, will affect Disney+, Hulu, and various bundled packages. Specifically, the ad-supported Disney+ plan will climb by $2 to $11.99 per month, while the ad-free version will rise by $3 to $18.99 per month. This move marked the fourth straight year of price hikes for Disney+. The decision by an industry giant created concerns about a more challenging competitive environment for smaller streaming services like fuboTV, potentially affecting their own pricing power and ability to keep subscribers.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy fuboTV? Access our full analysis report here, it’s free.
What Is The Market Telling Us
fuboTV’s shares are extremely volatile and have had 58 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 6 days ago when the stock gained 3.7% on the news that investors scooped up equities, shaking off the initial concerns inferred from the Fed's dot plot, with tech stocks leading the charge.
As a reminder, the Federal Reserve cut its benchmark interest rate by 25 basis points the previous day and signaled that more reductions could come before year-end and beyond. Initially when the cut was announced and Fed Chair Powell held his press conference, there was a pullback in the market as the Fed's "dot plot" revealed that only one cut was likely for 2026. This was below the three cuts that had been priced into the markets. This was the first interest rate cut of 2025, a move investors had widely anticipated. In response to the decision, stocks rose significantly, positioning major indexes like the S&P 500 and Nasdaq to open at record levels.
The Fed's decision was influenced by signs of a weakening labor market. Lower interest rates are generally seen as positive for stocks because they reduce borrowing costs for businesses and make fixed-income investments like bonds less attractive by comparison, driving capital into the equity market. While Fed Chair Powell noted the path forward has risks, the prospect of looser monetary policy has fueled optimism on Wall Street.
fuboTV is up 200% since the beginning of the year, but at $4.23 per share, it is still trading 22.5% below its 52-week high of $5.46 from January 2025. Investors who bought $1,000 worth of fuboTV’s shares 5 years ago would now be looking at an investment worth $477.97.
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