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Opendoor, Purple, Peloton, DraftKings, and fuboTV Stocks Trade Down, What You Need To Know

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What Happened?

A number of stocks fell in the afternoon session after investors took some profits off the table as markets awaited signals on future monetary policy from the Federal Reserve's Jackson Hole symposium later in the week. 

The downturn in the market was largely attributed to a significant sell-off in megacap tech and chipmaker shares. Nvidia, Advanced Micro Devices (AMD), and Broadcom all saw notable drops, dragging down the VanEck Semiconductor ETF. Other major tech-related companies like Tesla, Meta Platforms, and Netflix were also under pressure. A key reason for this trend is that much of the recent market gains have been concentrated in the "AI trade," which includes these large technology and semiconductor companies. So this could also mean that some investors are locking in some gains ahead of more definitive feedback from the Fed.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

Zooming In On fuboTV (FUBO)

fuboTV’s shares are extremely volatile and have had 61 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 1 day ago when the stock gained 4.3% on the news that it announced two major international content partnerships to strengthen its premium sports lineup in key global markets. The sports-first streaming platform forged a multi-year partnership with DAZN in Canada, bringing marquee rights like the NFL and UEFA Champions League to its subscribers. This expands on an existing distribution agreement in the U.S. In a separate deal, Fubo's subsidiary in France, Molotov, secured a carriage agreement with Ligue 1, France's professional soccer league, for the 2025/2026 season. These agreements significantly broaden Fubo's premium live sports content in key international markets, strengthening its global strategy.

fuboTV is up 148% since the beginning of the year, but at $3.50 per share, it is still trading 36% 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 $309.35.

Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.

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